Alternative Minimum Tax (AMT)

Under the tax law, certain tax benefits can significantly reduce a taxpayer's regular tax amount. The alternative minimum tax (AMT) applies to taxpayers with higher incomes by setting a limit on those benefits to ensure that taxpayers pay at least a minimum amount of tax. 

How is the AMT calculated?

The AMT is the excess of the tentative minimum tax over the regular tax. Thus, the AMT is owed only if the tentative minimum tax for the year is greater than the regular tax for that year. The tentative minimum tax is figured separately from the regular tax. 

Use the Alternative Minimum Tax (AMT) section in scenario analysis to make adjustments based on Form 6251. The amount of AMT, if any, will display at the bottom of the section as "AMT". The calculator icon is clickable and will show the calculation steps.

Additional information on AMT in Scenario Analysis:

• Modeling Equity Compensation (e.g., RSUs, ESPPs, NQSOs, ISOs, etc.) in Scenario Analysis

• Incentive Stock Options: "Solve for Max" and "Max Before Prior Year AMT Credit Phaseout"

• AMT Considerations When Using the Capital Gains Worksheet

• Prior Year AMT Credit