AMT adjustment broken for me

Forum|Forum|3 years ago
February 25, 2023
1 reply
1 view

Nothing changes on my AMT calculation when I enter an adjustment. I entered in my actual adjustment and did not see it on the final result calculation when it said my AMT was 0. I jokingly entered 10 million as my adjustment and it still said amt was 0 and that number was not listed anywhere.

I also tried calling support 2 times. The first time they immediately hung up and the second time I explained the problem and they ghosted me after 5 minutes of silence. Very frustrating. Thinking about trying to do my taxes elsewhere.

TurboTax Premier Online

MaryK4

Level 15

Can you clarify which specific adjustments you are making? In general, if the adjustment item does not apply to the specifics of your AMT computation, it will not change the tax. (I may be able to trace the data entry).

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jolshanAuthor

Level 2

I’m trying to add an adjustment due to exercising and holding isos.

for what it’s worth though, none of the fields affected the calculation, so it’s a pretty bad user experience regardless.

jolshanAuthor

Level 2

The adjustments you enter have to directly affect the AMT item and in the case of the stock options, very few adjustments will change your AMT amount. (One example I can think of is if there were two options exercised and one had a loss but this is highly unlikely). @jolshan

I’m not sure I follow what you said. Here’s what I know about amt

1) When exercising and holding ISOs there is an AMT adjustment for the difference between my strike price and the market value for when I exercised. I have documentation from my employer with a field called “AMT” adjustment that is non-neglible

2) I know that given the adjustment there is a calculation in which my taxable income is added to the adjustment, the amt exemption is subtracted, some rate is multiplied, and if that final value is greater than my current tax calculation, I’ve triggered AMT and must pay that value. I tried to do a quick calculation myself but ran into some confusion on my income and the rates. Turbo Tax seems to be claiming to do this calculation but I don’t see the work shown and the AMT adjustment is absent.

3) Several of my coworkers who exercised and held triggered amt last year because the difference between their strike and the current market value was very high

4) If I jokingly said the AMT adjustment was 10 million, that should without fail trigger AMT and the fact that it is not indicates either a bug in the software or that these fields are not clear to the user and therefore also a bad user experience.

TLDR; I know enough about AMT to know that it could be triggered by this adjustment and the fact that I can’t even see the calculation take the adjustment into account is worrying and makes me think the software has an issue

https://ttlc.intuit.com/turbotax-support/en-us/help-article/taxation/alternative-minimum-tax-amt-2021/L7dKAer4E_US_en_US