What is the difference between incentive stock option (ISO) grants and non-qualified stock option (nonqual) grants?

There are many differences between incentive and non-qualified stock options. The biggest difference between the two is how taxes are calculated. Non-qualified stock options are treated as regular income and are usually taxed at your compensation income level.

Incentive stock options, however, can be taxed at varying levels. Please consult your tax advisor for information about your specific situation. More.

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