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this video will help you understand and take advantage of your incentive stock options before they expire if you dont know who I am my name is Chris dim Im a certified financial planner out of Edmonds Washington and I specialize in working with folks to and through retirement in todays video I thought wed cover incentive stock options specifically what are incentive stock options how do they work and how are they taxed as well as a brief explanation on the Alternative Minimum Tax and then some best practices to be aware of if you do have incentive stock options so lets jump in number one what are incentive stock options incentive stock options are a form of equity compensation your company might give you that fall under the broader category of employee stock options theres two types of employee stock options theres qualified and non-qualified employee stock options the qualified kind are called incentive stock options and incentive stock options have the ability to achieve some