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You will receive the net proceeds in cash after option exercise costs, taxes, commissions and fees. You may use the proceeds from the stock sale to cover the purchase price, tax withholding and additional fees.
There are two key differences who the stock can be issued to and the tax treatment. Qualified stock options, also known as incentive stock options, can only be granted to employees. Non-qualified stock options can be granted to employees, directors, contractors and others.
Once you exercise your non-qualified stock option, the difference between the stock price and the strike price is taxed as ordinary income. This income is usually reported on your paystub. There are no tax consequences when you first receive your non-qualified stock option, only when you exercise your option.
A non-qualified stock option (NSO) is a type of employee stock option wherein you pay ordinary income tax on the difference between the grant price and the price at which you exercise the option.
Non-qualified stock options (NSOs) are a type of stock option that does not qualify for favorable tax treatment for the employee. Unlike with incentive stock options (ISOs), where you dont pay taxes upon exercise, with NSOs you pay taxes both when you exercise the option (purchase shares) and sell those shares.

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There are two key differences who the stock can be issued to and the tax treatment. Qualified stock options, also known as incentive stock options, can only be granted to employees. Non-qualified stock options can be granted to employees, directors, contractors and others.
You will receive the net proceeds in cash after option exercise costs, taxes, commissions and fees. You may use the proceeds from the stock sale to cover the purchase price, tax withholding and additional fees.
You will receive the net proceeds in cash after option exercise costs, taxes, commissions and fees. You may use the proceeds from the stock sale to cover the purchase price, tax withholding and additional fees.
Stock acquired from exercising a non-qualified stock option is treated as any other investment property when sold. The employees basis is the amount paid for the stock, plus any amount included in income upon exercising the option.
The minimum NSO exercise withholding requirement is only 22% for up to $1 million in spread value (37% if over $1 million). Many companies try to estimate the right amount but it isnt very easy. Companies are required to withhold NSO taxes only for employees.

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