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Incentive Stock Options: Alternative Minimum Tax Explained!

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Java Wealth - Personal Finance for Tech Employees

If you have Incentive Stock Options (ISOs), then you also have to think about the Alternative Minimum Tax (AMT). Otherwise, you may be in for a surprise when you file your taxes!

What is AMT, and why does it even exist?
Why is it relevant to me as a holder of ISOs?
Explaining the ISO Bargain Element and how it fits into the AMT formula
How to exercise ISOs without triggering AMT
What is the AMT Credit?

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#personalfinance #money #stockcompensation

posted by albacoffieiw