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Alternative Minimum Tax

The Alternative Minimum Tax (AMT) is a parallel federal tax system designed to ensure high earners pay a minimum level of tax – and it catches many tech employees completely off guard. Exercising Incentive Stock Options (ISOs) can trigger AMT even if you don’t sell a single share, resulting in a tax bill on gains that exist only on paper. Understanding your AMT exposure before you exercise options is one of the most important steps in managing your equity compensation. Ponder the articles below to learn how AMT works, when it applies to stock options, and how to plan around it.

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    July 28, 2025

    The Figma IPO is on the horizon!

    Alternative Minimum Tax, Financial Planning, ISOs, NSOs, RSUs
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  • Tax Bill Questions

    July 21, 2025

    Some more questions answered about the new tax bill

    Alternative Minimum Tax, Financial Planning
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  • AMT Credit Explained: How to Get Your Money Back

    May 19, 2025

    You paid a painful AMT bill on ISOs you exercised. Some of that money may be waiting for you to claim it back – but the IRS won't send a reminder. Here's how the AMT credit works, how to unlock it, and why some people never recover a dollar.

    Alternative Minimum Tax, Financial Planning, ISOs
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  • The AMT and ISOs

    November 18, 2024

    The AMT can be complicated with ISOs.

    Alternative Minimum Tax, ISOs
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  • ISOs and the AMT

    May 13, 2024

    Here's how to handle exercising ISOs and having a big AMT.

    Alternative Minimum Tax, Financial Planning, ISOs
    Read More
  • Exercising ISOs in a High Income Year

    May 6, 2024

    High Income Year? Higher Taxes? It could be a great opportunity to exercise some ISOs!

    Alternative Minimum Tax, Financial Planning, ISOs
    Read More
  • AMT Threshold with ISOs

    April 29, 2024

    You can exercise some ISOs and not set off the AMT. Here's how.

    Alternative Minimum Tax, Financial Planning, ISOs
    Read More
  • Stock Compensation and Taxes

    March 27, 2023

    Stock comp and taxes are complicated!

    Alternative Minimum Tax, Financial Planning, ISOs, NSOs, RSUs
    Read More
  • What if You Exercised Your ISOs and They are Now Underwater?

    February 27, 2023

    Tax implications for ISOs are very complicated. Here are some helpful tips for you.

    Alternative Minimum Tax, Financial Planning, ISOs
    Read More
  • Avoid These 3 Tax Mistakes with RSUs, Stock Options, and ESPPs

    February 20, 2023

    Here are three common tax mistakes you can avoid with stock ownership.

    Alternative Minimum Tax, ESPPs, Financial Planning, ISOs, NSOs, RSUs
    Read More
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