Get Irs 8801 2022-2025

Taxpayers may face the AMT when exercising ISOs if one of several conditions are met. These conditions may include but aren't limited to having a high household income with a significant amount of deductions, realizing a large capital gain, or exercising stock options that have a significant paper gain.

Then, subtract your AMT exemption (if eligible), which for the 2023 tax year is $81,300 for individuals, $63,250 for married couples filing separately, and $126,500 for married couples filing jointly or qualifying widow(er).

Alternative minimum tax 2023 SingleMarried, filing separatelyExemption amount$81,300$63,250Income at which exemption begins to phase out$578,150$578,150The AMT exemption amount for certain individuals under 24 equals their earned income plus $8,800. Nov 9, 2023

Not everyone is subject to AMT. You might be subject to AMT if you earn income above a certain level and/or from certain sources (i.e., tax preference items and /or adjustment items), including: Incentive stock options. Intangible drilling costs.

Claim the AMT credit while filing your current year tax return by filling out Form 8801 and filing it along with your tax return. Carry forward and track the remaining credit you were not allowed to use in the current year.

If you could not claim your entire credit in six years, any remaining amounts of AMT that you paid were forfeited. Under current tax law, you can carry forward your AMT credit for up to 20 years. For most taxpayers, that length of time will be sufficient to ensure that they can claim the entire credit due to them.

AMT exemption amounts for 2022-2023 Filing status2022 AMT exemptionSingle or head of householdUp to $75,900Married, filing separatelyUp to $59,050Married, filing jointlyUp to $118,100 Mar 21, 2023