Why am I getting hit with the Alternative Minimum Tax (AMT)?
by TurboTax • 
Updated December 11, 2025 5:04 AM
Common reasons for getting hit with the AMT include:
Exercising or selling ISOs (incentive stock options)
Deducting interest from a large second mortgage for a houseboat or recreational vehicle
Realizing a large capital gain (for example, when you sell a home or other investments for a profit)
Having a household income greater than the phase-out thresholds while also having a significant amount of itemized deductions
If you're 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.
