Get Irs 6251 2022-2025

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

Incomes above the annual AMT exemption amounts typically trigger the alternative minimum tax, and calculating AMT is different from calculating your tax under regular IRS rules.

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.

Use Form 6251 to figure the amount, if any, of your alternative minimum tax (AMT). The AMT is a separate tax that is imposed in addition to your regular tax. It applies to taxpayers who have certain types of income that receive favorable treatment, or who qualify for certain deductions, under the tax law.

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).

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.

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