Stock Options

Employee stock options are options your employer grants you. Two basic types are:

  • Qualified (statutory) stock options
  • Nonqualified (nonstatutory) stock options

Two groups of qualified stock options — also known as statutory stock options — are:

  • Incentive stock options (ISOs)
  • Options granted under an employee stock purchase plan

All other employee stock options are nonqualified stock options. These are also known as nonstatutory stock options.

Related Topics

Related Resources

Direct Sellers and Taxes – How Does it Work?

Many are surprised to learn that even side gigs come with a tax price. H&R Block Tax pro's have arranged expert tips for those who owe direct sales taxes.

Understanding Your Closing Disclosure | H&R Block

What is a closing disclosure? When you buy a house, you will receive a closing disclosure that can benefit you at tax time. Learn more at H&R Block.

What Is Cryptocurrency? | H&R Block

What is Cryptocurrency? Bitcoin, Litecoin, and the like leave many wondering how to classify this new form of investment. Find the answer at H&R Block.

Taxes in the Gig Economy

The gig economy and taxes go hand-in-hand. If gig work is your primary form of income, review these important tax tips from our H&R Block tax professionals.