When you exercise and hold incentive stock options, it’s very possible that you will be subject to the alternative minimum tax (AMT). This part of the tax code gets complex, making it difficult to understand. One way to think of the AMT is a pre-payment of income tax...
If you have incentive stock options, you’ve likely heard the term alternative minimum tax, or AMT. But what is the AMT, and how is it calculated? It’s a type of income tax, but very different than what you may be used to paying. Typically, the calculation of your total income tax due is subject to the rules and regulations of the regular tax law.
Whether you’re just getting started or expanding your knowledge, here are some resources to get you started.
Understand what you have, what you should consider, and what ultimately matters to you.
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Understand what you have, what you should consider, and what ultimately matters to you.
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