Alternative minimum tax?

[catsmeou]

I need to make a withdrawal from a deferred comp account to finish off a remodeling job but am concerned about tipping myself into the alternate minimum tax hole. Single filing, standard deduction, minimum saving account interest, pension in the $140k range. How much can I withdraw from the deferred comp account (with fed/state tax withholding) before I risk ending up in the AMT range? 

[Anonymous_]

I will page @dmertz. please check back later.

[ThomasM125 · Accepted solution]

I can't give you an exact amount that you can withdraw from your deferred comp account before you incur an alternative minimum tax (AMT) without knowing everything about your tax situation. However, your income is above the AMT standard deduction for a single person, which is $75,900 for 2022, so you are correct to be concerned about it.

The AMT is often associated with individuals who itemize deductions, which you don't, so that is a good thing. Also, capital gains and depreciation issues can trigger an AMT. The sale or exercise of qualified stock options can trigger AMT as well, but I can't tell from your question if your deferred compensation involves this.

The best thing to do would be to prepare your tax return in TurboTax and add in the income from your anticipated deferred compensation withdrawal and see what if any affect it has on your AMT.

[dmertz]

You would need to prepare a simulated tax return to answer that question.

[catsmeou]

Thanks for the info. I suspected this was the case, but hope springs eternal that there was a simpler solution. Buggers. 

[Mike9241]

look at form 6251  which is the form where the AMT is computed