You need to report form 3921on your return. Your tax liability changes if you are subject to AMT.
In the year that you exercise an Incentive Stock Option, the difference between the market value of the stock on the exercise date and the exercise price counts as income under the AMT rules, which can trigger an AMT liability.
However, you will also generally earn an AMT credit in that year which can reduce your tax bill in later years.
For more information. please check: Incentive Stock Options
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