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With incentive stock options (ISOs), the value of the exercise income appears on Form W-2 only if you made what is technically called a disqualifying disposition. That means you sold or gifted the stock before you met the required holding periods of one year from exercise and two years from grant.

Employees do not owe federal income taxes when the option is granted or when they exercise the option. Instead, they pay taxes when they sell the stock.

Gains from the sale of the stock are subject to a 3.8% net investment income tax as well. Compare that to cash compensation, which is taxed in the year it is paid at an individual's ordinary income tax rate (a maximum of 37% under current law).

Form 3921 is an IRS form that must be filed by a company when an employee has exercised an incentive stock option (ISO) in the last tax year. Form 3921 informs the IRS which shareholders received ISO compensation.

Starting July 1, 2023, South Dakota's Medicaid expansion allows individuals to qualify for Medicaid by raising the income requirement to 138% of the Federal Poverty Level (FPL), up to $41,400 for a family of 4, and adding childless adults. Apply to find out if you are eligible.

Individuals who are eligible are entitled to full South Dakota Medicaid coverage. A person must be age 18 or older and have quadriplegia. The income limit can be up to $2,742 (2023) a month. The resource limit is $2,000 for an individual.