What triggers the Alternative Minimum Tax?

AMT is triggered when tax preference items (ISO stock options, accelerated depreciation, certain deductions) reduce regular tax below the AMT calculation. You pay the higher of regular tax or AMT.

What are the 2024 AMT exemption amounts?

For 2024: $85,700 (single), $133,300 (married filing jointly), $66,650 (married filing separately). Exemptions phase out at $609,350 (single) and $1,218,700 (MFJ).

What is the AMT credit?

If you paid AMT due to timing differences (like ISO exercise), you earn a minimum tax credit (MTC) that can offset future regular tax in years when regular tax exceeds AMT.

Does AMT affect capital gains?

Long-term capital gains and qualified dividends are taxed at the same preferential rates under AMT as regular tax, so they typically do not trigger AMT directly.

How do I calculate AMTI?

Start with regular taxable income, add back AMT preferences and adjustments (state taxes, miscellaneous deductions, ISO spread, depreciation differences), subtract exemption, then apply AMT rates.

US Alternative Minimum Tax (AMT) Calculator

Calculate Alternative Minimum Tax liability. AMT rates: 26% on AMTI up to $220,700, 28% above. Exemptions: $85,700 (single), $133,300 (MFJ) for 2024. AMT credit carryforward.

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Frequently Asked Questions

What triggers the Alternative Minimum Tax?

What are the 2024 AMT exemption amounts?

What is the AMT credit?

Does AMT affect capital gains?

How do I calculate AMTI?