Responding to my own inquiry, from the article: > Under current tax law, the income from exercising ISOs, a special type of option typically reserved for execu

Responding to my own inquiry, from the article: > Under current tax law, the income from exercising ISOs, a special type of option typically reserved for executives and senior employees, falls under an alternative tax calculation designed to prevent high-earners from using deductions to avoid paying tax. Non-qualified stock options, more commonly awarded to regular employees, are taxed the year they’re exercised on the gain in the stock.