Advanced Strategies for Managing Alternative Minimum Tax (AMT)

Advanced Strategies for Managing Alternative Minimum Tax (AMT) The Alternative Minimum Tax (AMT) was designed to ensure high-income earners pay a minimum level of tax—regardless of deductions or credits. However, it often impacts middle- and upper-middle-income individuals, especially those with incentive stock options (ISOs), large state tax payments, or high itemized deductions. If you’re near or above the AMT threshold, proactive planning can help minimize your liability and preserve more of your income. In this article, we’ll break down advanced AMT mitigation strategies that can reduce your exposure, increase efficiency, and keep you tax-compliant. 📌 Table of Contents What Is the Alternative Minimum Tax? Common AMT Triggers Advanced Tax Planning Techniques Managing ISOs and AMT Timing External Resources and Tools What Is the Alternative Minimum Tax? The AMT is a parallel tax system that recalculates income using fewer deductions and adds bac...