What is an Alternative Minimum Tax (AMT) calculator?

Alternative minimum tax (AMT) calculator with deductions and estimates your tax after exercising Incentive Stock Options (ISO) for 2023 and 2024. You will only need to pay the greater of either your Federal Income Tax or your AMT Tax Owed, so try to be as detailed and accurate as possible

How do you calculate AMT taxable income?

ISO AMT adjustment = bargain element * number of shares $43 * 10,000 = $430,000 Duncan’s ISO AMT adjustment is $430,000. Figure out your AMT taxable income by adding your regular tax liability and ISO AMT adjustment together. Regular tax liability + ISO exercise = AMT taxable income Here’s what that equation would look like for Duncan:

How do I calculate my ISO AMT adjustment?

Now, it’s time to calculate your ISO AMT adjustment. If you exercised and held any ISOs, start by calculating your bargain element. To do so, you’ll need the following numbers: The fair market value of the stock on the date you exercised. For Duncan, it’s $55. The strike price (i.e. price paid) per ISO. For Duncan, it’s $12.