What to do after you’ve been hit by AMT?

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Last two seasons I’ve been hit by AMT due to exercising ISO. What can I do this year to recover from those unexpected extra costs?

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panic 3 months 1 Answer 195 views 0

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    If you exercise an incentive stock option and don’t sell the shares before the end of the calendar year, you’ll report additional income for the alternative minimum tax.

    To avoid being hit with the AMT you would need to sell the shares before the end of the calendar year. But it’s tricky because depending on your income those stock sales could also make your income subject to AMT.

    https://www.irs.gov/taxtopics/tc427

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