When you receive a free share of stock, it does count as taxable income — just as if you were given a cash gift. You’ll be required to report the value of the shares (at the time you receive them) to the IRS, and you’ll be taxed on that value. Note that this income will be taxed at your standard rate, as the gift of a share is not considered a capital gain. If you decide to sell your free share, and it has increased in value since you received it, you'll be taxed on that increase — this time at the short-term capital gain rate.