Are incentive stock options subject to social security tax. NSOs do not meet certain IRS requirements that allow you special tax treatment. With NSOs, you are taxed when you exercise the stock options. You pay ordinary income and Medicare taxes and are subject to Social Security tax if you have not paid the yearly maximum on the difference between the fair market value at.

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Incentive Stock Options And How They Affect Your Tax Obligations

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  • GO TO PAGE. Learn About Incentive Stock Options and the Taxes. Social Security; Taxation of Exercising Nonqualified Stock Options. In general this income will be subject to the self-employment tax as well as federal and. Are stock options subject to social security tax.

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