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Subject:  AMT because of exercising stock options? Date:  4/12/2008  11:27 PM
Author:  max401k Number:  100253 of 132092

I use a online tax filing software. For this tax year, I exercised non-qualified stock options and restricted stock awards. The income reported on W-2 is now quite a bit high. I understand all stock options and restricted stock awards are "short term gains" and hence taxed as ordinary income.

I itemize my deductions. The only deductions I claim are state tax I paid.
(state tax that has been withheld and state tax I paid last year along with the previous year's return)

- My itemized deductions are limited by some amount because my AGI is too high. This perhaps is nothing to do with AMT?
- In addition, I have to pay AMT based on the computation by the tax software.

Quesiton is this: Is it normal to run into AMT because of high AGI? I don't mind paying the tax, but I thought AMT was there so as to disallow only certain types of deductions for people with high AGI. I don't claim any deductions other than state-taxes I have already paid.

Wherever I read about AMT, I only see referneces to Incentive Stock Options, but that is not what I exercised. I exercised non-qualified stock options and restricted stock awards (stock grants).

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