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 can be broken into 2 groups:
Incentive stock options (ISOs)
Options granted under an employee stock purchase plan
If your stock options don’t fall into either group, then they are considered nonqualified 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.