Alternative Minimum Tax (AMT)
taxAlso known as: AMT, alternative minimum tax
Updated · Written and reviewed by Konstantin Iakovlev
Detailed explanation
AMT recomputes your tax under a separate formula with fewer deductions and credits, then you pay the higher of regular tax or AMT. The 2026 AMT exemption is $90,200 single / $140,300 MFJ, with phase-outs starting at $635,300 / $1,275,650. ISO bargain elements (exercise price minus FMV) are an AMT preference item — exercising large ISO grants can trigger AMT in the year of exercise. The AMT tax credit lets you recover prior-year AMT in years your regular tax exceeds AMT. Most W-2 employees never hit AMT post-2017.
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Related tax terms
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Standard Deduction
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Effective Tax Rate
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