Employee stock options are options that are granted to you by your employer. There are 2 basic types: qualified (statutory) stock options and nonqualified (nonstatutory) stock options. Qualified stock options, also known as statutory stock options, can be broken into 2 groups:
Incentive stock options (ISOs)
Options granted under an employee stock purchase plan
All employee stock options are nonqualified stock options, also known as nonstatutory stock options.
For information about reporting your stock sale, click the link for the type of program through which you acquired your stock. If you’re not sure, check with your employer.