From 24/7 Wall St. · Gerelyn Terzo · · 1m 10s
AI Stock Options Boost Social Security Without Tax
Mark's AI stock options could make him rich without increasing his Social Security taxes.
In brief
Mark's AI stock options could make him rich without increasing his Social Security taxes. Mark's AI stock options could boost his Social Security benefits without adding to his taxes. Originally reported by 24/7 Wall St..
Social Security Boost Myth
Mark assumes AI stock options will raise his Social Security check but the reality is more complex.
Incentive Stock Options
Incentive stock options don't count as wages for Social Security taxes when exercised.
Nonqualified Options
Nonqualified stock options count as wages for Social Security taxes when reported on W-2.
Wage Ceiling Limit
Social Security taxes only count wages up to $184,500 in 2026, so stock gains above this cap don't boost benefits.
Taxable Benefits
For single filers, Social Security benefits can be taxed if combined income exceeds $34,000.
Stock Options Strategy
Mark should check his grant agreement and W-2 to determine how stock options affect his Social Security.
What Happens Next
Mark can use stock options as a separate retirement fund without increasing his Social Security taxes.
The one thing
Mark's AI stock options could boost his Social Security benefits without adding to his taxes.
