Glossary A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z | 1 | 3 | 4 | 5 Definitions by InvestorWords.com   What is...? Estimated Taxes Withheld These are estimated taxes only. Your company will confirm the actual amount to be withheld from your trade, typically on the following business day. When you exercise non-qualified stock options, the gain is generally subject to ordinary income tax taxes. (Taxes are not commonly withheld on Incentive Stock Option exercises, but this depends on your company and/or on your current situation). The amount that is withheld can vary from person to person, company to company, and country to country. Tax withholding is cumulative. In other words, if the total dollar amount of your year-to-date withholding has already reached the maximum, there will not be any additional withholding on the proceeds of your trade. However, even if your employer doesn't withhold estimated taxes, you may still be required to pay ordinary income tax and any capital gains taxes due, so always consult a tax advisor to see how exercising options will impact your tax obligations. Copyright ©2009 by InvestorGuide.com. All Rights Reserved.