How Are Employee Stock Options Taxed?

Employee stock options are a great incentive that can be embedded within many compensation packages. Often, employees are able to buy the company stock at a discount, providing a great opportunity to accumulate wealth if the stock performs well.

But the other piece of the puzzle is trying to grasp how taxes for employee stock options work. It could easily become a nightmare if you've never dealt with stock options before. Here are a few insights to take the confusion away so you can maximize the potential of this incredible work benefit.

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Source Fool.com