There are many different ways an employer can award an employee with equity, or stock ownership, in the company. Briefly explained below are the ones commonly used for this purpose. Critical to planning for the Alternative Minimum Tax, the employee must first know exactly what form of equity he holds, because only one has direct AMT implications.

Incentive Stock Option - also known by its acronym, "ISO," or as a "Qualified Stock Option," this one is an AMT preference item. If the employee holds an ISO, tax planning is critical - significant Alternative Minimum Tax dollars can be involved.

None of the other forms of employer equity ownership listed below has direct AMT implications. General tax planning always is advisable, of course, but these are not AMT concerns.

Non-Qualified Stock Option - the majority of stock options that employees are given are this type. Acronyms used are "N-Q," "NQ," or "NSO." Caution here is appropriate - these commonly are mistaken for the ISO form of stock option.

Restricted Stock or Restricted Stock Unit - this is not a stock option; it is direct ownership, or a direct ownership derivative, of the employer's stock. Also referred to as "RS" or "RSU." Restricted Stock itself is sometimes distinguished from an RSU by calling it a Restricted Stock Award, or "RSA."

Stock Appreciation Right, or "SAR" - this is a bonus agreement between the employer and the employee whereby the employee will be paid an amount equal to any appreciation in the employer's stock over a set period of time. Also known as "Phantom Stock," this simply is a cash bonus plan that is based on an increase in the stock's value.

Employee Stock Purchase Plan, or "ESSP" - these plans allow employees to purchase actual shares of stock from the employer, usually at a discount.

Employee Stock Ownership Plan, or "ESOP" - this is a qualified retirement plan that invests in the employer's stock. It is similar to a 401(k) plan, but without the investment diversification typically found in a 401(k).

An individual with an equity award received from his employer simply needs to review the above list and make sure he knows exactly what he has. If, and only if, he has an Incentive Stock Option - an ISO - does he need to worry about the AMT impact. But the time to worry is now - Dec. 31 is fast approaching. Come Jan. 1 it is too late to do anything about 2009's taxes.