AMT (Alternative Minimum Tax)

通俗地说，当你的Itemized Deduction的数目比较大的时候，你就有可能trigger AMT. To avoid the AMT, you need to understand how the AMT differs from the regular tax system。
下面介绍一些常碰到的项目：
1. Personal  Exemption, this is one of the reasons why married couples with children are strongly affected by the AMT.

2. Medical Expenses, If you itemize deductions, medical deductions are only allowed to the extent that they exceed 10 percent of adjusted gross income, rather than 7.5 percent under the regular tax system.
所以强烈建议使用HFSA provided by your employer.

3. State & local tax, property tax, personal property tax.
因此，如果当年你的收入偏高，可以考虑提前支付第四季度的property tax, 或者考虑have a home office, 因为Real estate and personal property taxes are not deductible for AMT if they are part of itemized deductions. Taxes deductible on a business schedule (Schedule C), rental schedule (Schedule E), or farm schedule (Schedule F or Form 4835) are allowed for the AMT.

4. Home Equity loan proceeds used to improve home will be allowed to deducted from AMT. You may be able to get a lower interest rate from a regular car loan. If the car is used in your business, you may be able to write off  some of your auto loan interest as a business expense on Schedule C.

5. State Tax refund is not counted as taxable income for AMT.

6. 另外一个common problem for people affected by AMT  就是ISO（incentive stock option), if you not sell, the transaction is not taxable for normal tax purpose.  But the difference between exercise price and the fair market value of the stock on the day of exercise is adjustable for AMT purpose.
因此，建议if stock fall by the end of the year, sell it to avoid AMT or you may need tax planning to forcast tax consequences.