A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z

Initialism standing for alternative minimum taxable income, which is similar in concept to adjusted gross income (AGI) for ordinary tax. When you exercise and hold ISOs and do not sell the stock in the year of exercise, the spread at exercise is part of AMTI. You subtract from AMTI your AMT exemption amount and calculate the amount of AMT. If it is higher than your ordinary tax, you pay the AMT amount (technically, AMT is the amount over your regular tax).

For more on these topics, see the sections ISOs: AMT and ISOs: AMT Advanced elsewhere on this website.

Return to list Register Now

Try the new myStockOptions.com Glossary App! Now available for Android and iOS.

Get it on Google Play
The content is provided as an educational resource.
myStockOptions.com shall not be liable for any errors or delays in the content, or any actions taken in reliance thereon.
Copyright © 2000-2021 myStockPlan.com, Inc. U.S. Patent 7,353,200.
Contact editors@mystockoptions.com for licensing information