Skip to main content
Message Font: Serif | Sans-Serif
No. of Recommendations: 0
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).

Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.