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whats going on Alex here and today were going to be taking a look at the income tax implications of incentive stock options or isos and specifically were going to be closely looking at the AMT or alternative minimum tax implications that you will likely need to contend with if youre dealing with incentive stock options with that said were going to be doing a pretty deep dive were going to be looking at a few different scenarios and really looking at the mechanics of how AMT works with regard to isos so with that lets begin lets take a look at some background questions first and have a little spreadsheet here with some figures but really its good to get a background on what were talking about so that we can have an effective conversation in terms of understanding isos especially in light of AMT so first lets understand what incentive stock options actually are now theres really two broad categories of stock options from a tax perspective one of those is non-qualified stock o