Tax
How are stock options taxed?
Quick Answer
Non-qualified stock options (NSOs) are taxed as ordinary W-2 income on the exercise spread. Incentive stock options (ISOs) avoid ordinary tax at exercise but generate AMT income; long-term capital gains apply if held 2 years from grant and 1 year fr…
Warren Team
Updated April 26, 2026
37
Warren Team
Updated April 26, 2026
37
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