AMT Still Matters in 2026 for ISO Exercises: The $150k Income Trap
Most high earners think the TCJA killed the AMT. For ISO exercisers at mid-income, it’s very much alive and about to bite harder.
incentive stock options
How do I avoid AMT when exercising incentive stock options before year-end, and can the AMT credit realistically be recovered later?
Understanding AMT and ISO Exercise Timing Exercising incentive stock options (ISOs) can trigger the Alternative Minimum Tax (AMT), creating a significant tax burden even when you haven’t sold the shares. The AMT system treats the “bargain element” of your ISO exercise as taxable income, potentially resulting in thousands of dollars in additional taxes. While AMT … 더 읽기