Stock options are compensation that companies grant to employees, giving them the right to buy company stock at a fixed price (strike). Tax treatment depends on option type (ISOs vs. NSOs), holding periods, and sale prices. Proper planning can reduce tax liability by 30-50%, potentially saving tens of thousands. Tax planning involves understanding vesting schedules, exercise timing, holding periods, Alternative Minimum Tax (AMT), and capital gains rates. It requires coordination with tax advisors, CFOs, and financial planners to optimize equity compensation. High earners (founders, executives, senior employees) hold substantial option grants; tax planning decisions can be worth millions over a lifetime. For tax professionals, this skill is daily work. For individuals, understanding tax implications of equity prevents costly mistakes: exercising at the wrong time or failing to plan for AMT can result in unexpected tax bills. Proper planning is sophisticated; demand for tax advisors specialized in equity compensation is high and growing.