Employee stock options income tax
15 Jun 2012 The value of incentive stock options is included in minimum taxable income for the alternative minimum tax in the year of exercise; consequently, 4 Oct 2017 Employees pay ordinary income taxes on the value they get from stock and most options. Employers deduct that value from their taxable income. options is their tax treatment for federal income tax purposes. The Internal. Revenue Code classifies employee stock options as either incentive stock options.