IMPORTANT DISCLOSURE: HYPOTHETICAL ILLUSTRATION. NOT TAX, LEGAL OR INVESTMENT ADVICE.

This calculator is provided by Darrow Wealth Management for general educational and illustrative purposes only. Results are hypothetical estimates based on the information you enter and a limited set of assumptions. They are not guarantees and will differ from your actual tax liability.

The use of this calculator does not constitute advice of any kind. Nothing in this calculator is tax, legal, accounting or investment advice, or a recommendation to exercise, hold or sell any security. Using this calculator does not create an advisory or client relationship with Darrow Wealth Management. Darrow Wealth Management does not provide tax or legal advice. Consult a qualified tax professional or CPA about your specific situation before making any decision.

Assumptions and limitations. This calculator estimates federal tax only, using 2026 federal tax brackets, standard deductions and AMT parameters published by the IRS (Rev. Proc. 2025-32) as amended by the One Big Beautiful Bill Act.

Key assumptions and limitations of the calculator:

• The standard deduction applies (no itemized deductions)
• Income is limited to W-2 wages, pre-tax retirement contributions, and the capital gains and losses you enter
• All ISO exercises occur in the same tax year and the shares are held past December 31 of that year
• No state income tax or state AMT
• No Net Investment Income Tax, Additional Medicare Tax or other surtaxes
• No AMT credit carryforward from prior years and no other AMT adjustments or preference items

It does not account for disqualifying dispositions, the $100,000 ISO annual limit, early exercise or 83(b) elections, net or cashless exercises, multi-state residency, other types of income, tax credits, the terms of your company’s equity plan, and other material factors that may apply to your situation. The fair market value of private company stock is set by your company’s 409A valuation and can change, even after exercise.

Results may also vary based on the accuracy of user data inputs. Tax laws, IRS inflation adjustments and their interpretation change, sometimes retroactively, and could materially affect these results.

Risks of exercising ISOs. Exercising ISOs can create AMT on the spread even though you receive no cash and may not be able to sell the shares. If the stock later declines in value or becomes worthless, you may owe tax on value you never receive. Any resulting AMT credit may take years to recover and may not be fully recoverable.

No warranty; limitation of liability. This calculator is provided “as is” without warranty of any kind, express or implied, including as to accuracy, completeness or fitness for a particular purpose. To the fullest extent permitted by law, Darrow Wealth Management and its personnel are not liable for any loss or damage arising from the use of, reliance on, or inability to use this calculator or its results, including any errors, omissions or misinterpretation. You are solely responsible for your decisions and for confirming your tax situation with a qualified professional.

About us. Darrow Wealth Management is a SEC-registered investment adviser. More information, including our Form ADV, is available at adviserinfo.sec.gov and https://darrowwealthmanagement.com/disclosure/

By using this calculator, you acknowledge that you have read this disclosure, understand the limitations, and agree that any output from this calculator does not constitute a relationship with Darrow Wealth Management or financial, legal, tax, or investment advice of any kind.