Running time: 2:58. To make the most of nonqualified stock options (NQSOs), you must understand their taxation. Learn the tax basics of NQSOs in this video, which features clear and concise explanations by the editor-in-chief of With animated examples, the video presents how taxes are calculated for NQSOs, what types of taxes apply to NQSOs, how withholding works, and how capital gains taxes apply when you sell the shares. See also the video on the core concepts of stock options.