Skip to main content
Message Font: Serif | Sans-Serif
No. of Recommendations: 0
Hmm.. I think I found the answer to my question.

State-taxes are not deductible under AMT system. I live in CA.

The state taxes are higher becuase of my high-AGI (which was the result of exercising Non-qual stock options, grants and other short-term and long-term capital gains)

I went back to another thread that I had started last year and there was a similar response. I am kicking myself at the moment. There was a suggestion in last year's thread to pay less state-taxes (less withholding) and pay the rest in April-2008. I might not have run into AMT if I had done exactly that! I might be paying for my laziness in the form of AMT. Hope this link works to find the old thread.

Internet search on "AMT state taxes" - comes up with some articles that talk about state-taxes and about their being non-deductible under AMT.

Wish you all a satisfactory TAX-2008!
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.