Why am I getting hit with the AMT (Alternative Minimum Tax)?
Although the Tax Cuts and Jobs Act (TCJA) that was signed into law in December of 2017 substantially reduced the number of 2018 taxpayers subjected to the AMT, it didn’t completely eliminate it.
Common reasons for getting hit with the AMT include:
- Exercising or selling ISOs (incentive stock options);
- Deducting interest from a large second mortgage;
- Claiming business depreciation.
If you are subject to the AMT, you don't have to pay it separately; we've already accounted for it in your refund or taxes owed amount.