The 2020 AMT exemption is $72,900 for a single filer and $113,400 for a married couple filing jointly.
Several things could trigger AMT, including:
- Having a high household income - If your household income is over the phase-out thresholds and you have a significant amount of itemized deductions,
- Realizing a large capital gain - Long-term gains (e.g. when you sell a home or other investments for a profit) are taxed at the same rate under both systems, but capital gains could put you over the AMT exemption threshold. That could cause the AMT to kick in, which means you may not be able to deduct state income taxes you paid.
- Exercising stock options Exercising qualified employee stock options (also called incentive stock options or ISOs) to buy stock at a discounted price is normally not a taxable event until you sell the shares for a profit. The AMT creates a paper profit that’s taxable even though it’s not a real profit until you sell the shares.
For additional information, please see the following articles:
[ I am puzzled by your "1095-A" figures. Form 1095-A is the Health Insurance Marketplace Statement.]
