AMT Archives - Zajac Group

What You Should Know About the Alternative Minimum Tax and Incentive Stock Options

Most people understand that taxes can be a little more complicated when you have incentives stock options and other equity compensation. What they may not know is that income tax isn’t just about tax brackets to calculate your regular taxable income. The federal income tax system has a sister system that figures how much tax you may owe due to the Alternative Minimum Tax (AMT). AMT may kick in when your income goes over a certain threshold or when you engage in certain activities, namely exercising and holding incentive stock options.

6 Tips to Manage and Mitigate the Alternative Minimum Tax on Incentive Stock Options

by Daniel Zajac, CFP®, EA

Incentive stock options are a type of equity compensation you may receive as part of your overall compensation package. Incentive stock options, or ISOs, allow you to buy company stock at a fixed price for a set period of time, regardless of the current fair market value of the stock. In the best circumstances, incentive stock options can be a tool to generate significant wealth if…

What You Should Know About the Alternative Minimum Tax

by Daniel Zajac, CFP®, EA

The alternative minimum tax (AMT) acts as a sort of parallel tax system to the regular federal income tax system. For taxpayers, this means they need to calculate their income twice: once under the regular tax rules and a second time under AMT. After running this...

How to Use the Alternative Minimum Tax Credit Effectively in Retirement

by Daniel Zajac, CFP®, EA

If you have incentive stock options, you’ve likely heard of -- and perhaps already paid -- the alternative minimum tax. This is the tax due in the years you exercise and hold incentive stock options, or ISOs. You might also be entitled to an AMT tax credit if that’s...

Why Waiting to Exercise Your Incentive Stock Options May Increase The Alternative Minimum Tax

by Daniel Zajac, CFP®, EA

Incentive stock options are unique in that the longer you wait to exercise, the costlier it may be to exercise and hold your shares. That’s not because exercising the incentive stock option cost more, as that price is fixed, but because the cost of the alternative...

4 Taxes to Plan for When You Sell Your Incentive Stock Options

by Daniel Zajac, CFP®, EA

If you try and look up information to learn more about your incentive stock options, most of what you’ll find addresses what happens when you exercise your options -- but doesn’t go much farther than that. You may already know that when you exercise your incentive...

How and When Are Incentive Stock Options Taxed

by Daniel Zajac, CFP®, EA

Incentive stock options are a form of employee compensation that allows you to participate in the appreciating value of a company's stock price. A type of stock option that comes with potentially complicated tax scenarios. Similar to non-qualified stock options,...

How to Exercise Incentive Stock Options to the AMT Crossover Point

by Daniel Zajac, CFP®, EA

Finding the best time and best strategy to exercise incentive stock options is difficult. Competing considerations on income tax, investment planning, and financial planning make it difficult to address the best time to exercise incentive stock options (ISOs) with a...

4 Ways to Lower the Alternative Minimum Tax when you Exercise Incentive Stock Options

by Daniel Zajac, CFP®, EA

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...

Incentive Stock Options and The Alternative Minimum Tax

by Daniel Zajac, CFP®, EA

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.

Category: AMT

What You Should Know About the Alternative Minimum Tax and Incentive Stock Options

6 Tips to Manage and Mitigate the Alternative Minimum Tax on Incentive Stock Options

What You Should Know About the Alternative Minimum Tax

How to Use the Alternative Minimum Tax Credit Effectively in Retirement

Why Waiting to Exercise Your Incentive Stock Options May Increase The Alternative Minimum Tax

4 Taxes to Plan for When You Sell Your Incentive Stock Options

How and When Are Incentive Stock Options Taxed

How to Exercise Incentive Stock Options to the AMT Crossover Point

4 Ways to Lower the Alternative Minimum Tax when you Exercise Incentive Stock Options

Incentive Stock Options and The Alternative Minimum Tax

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