AMT
TaxesDefinition
Alternative Minimum Tax. A parallel US tax system designed to ensure high-income filers can't use deductions to escape paying meaningful tax. Calculate income tax both ways; you owe the higher amount.
2025 AMT exemption: ~$85K single, ~$133K married. 2017 TCJA dramatically reduced AMT impact (most filers no longer hit it). Still triggers for some ISO option exercises (large unrealized AMT income) and high-deduction high earners.
2025 AMT exemption: ~$85K single, ~$133K married. 2017 TCJA dramatically reduced AMT impact (most filers no longer hit it). Still triggers for some ISO option exercises (large unrealized AMT income) and high-deduction high earners.