The Tax Cuts & Jobs Act, which took effect in 2018, made significant changes to factors in the calculation of the alternative minimum tax (AMT) that will generally reduce the likelihood of having to pay the AMT. These changes include much higher AMT income exemption amounts than those in the past and a significant increase in the income point where the AMT phaseout begins. For details on tax reform, see the related FAQ.

The table below summarizes the AMT income exemption amounts, phaseouts, and rate thresholds that apply to income in the 2018 tax year. For details about the AMT calculation, see the related FAQ.

Filer status in 2018 AMT income exemption amount Exemption amount phaseout starts Exemption amount phaseout ends Point where rate
rises from
26% to 28%
Single $70,300 $500,000 $781,200 $191,500
(married filing separately: $95,750)
Joint $109,400 $1,000,000 $1,437,600 $191,500

If you do have to pay the AMT, there are planning techniques that can help. See FAQs on myStockOptions.com about how to minimize AMT liability, or how to manage the AMT if you know you must pay it.