Understanding Alternative Minimum Tax — how ISOs trigger Form 6251, AMT exposure from stock option exercises, and strategies to stay below the AMT threshold.
16 articles
Bunching an ISO exercise or a big share sale into one year stacks your income into the top bracket and past the AMT break-even. Here's how to optimize equity taxes across multiple years by flattening income instead.
Four quiet leaks — under-withholding, the broker basis trap, bunched income, and unplanned AMT — drain thousands a year from equity-comp holders who never see them coming. Here's how much each costs, and how to plug them.
AMT is driven by the ISO bargain element, so the way to avoid triggering it is to control that number — exercise to your break-even, spread exercises across years, and time disqualifying sales. Here are the levers in dollars.
How tender offer proceeds are taxed: capital gains on long-held shares, ordinary income above your 409A price, plus FICA and AMT traps for ISO, NSO, and RSU sellers.
Free Washington ISO AMT calculator: find your AMT-free exercise limit and the federal AMT bill on a full ISO exercise. Washington has no income tax — run your numbers in 60 seconds.
Texas iso amt calculator: model your ISO exercise with zero state tax. See AMT-free share limits and worked examples — run your numbers in 60 seconds.
New York ISO AMT calculator: federal 26%/28% AMT plus NY 10.9% top rate (NYC adds 3.876%). See worked examples — find your AMT-free limit in 60s.
California ISO AMT calculator for 2025: see your AMT-free exercise limit, the trap when you exercise too many shares, and worked numbers for three startup grants.
The best RSU tax calculators and equity comp tools in 2026, compared honestly by price, what they calculate, equity types, state coverage, and signup.
A complete step-by-step walkthrough of the AMT calculation: AMTI, exemption, rates (26%/28%), and comparison to regular tax. Includes a $200K salary + $300K ISO spread worked example.
Form 6251 is how you calculate Alternative Minimum Tax. Walk through the key lines, understand AMT adjustments and preferences, and see a worked example with ISO exercise.
The AMT is a parallel tax system that ensures high earners pay a minimum level of tax. Learn how it works, current exemption amounts, and why ISO exercises are the #1 trigger for tech employees.
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