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.

Employee Stock Purchase Plans (ESPP)

ESPP顾名思义就是公司offer 自己的股票to 员工at a discount price, knows as offer, or grant price.
员工在购买的时候，也就是大家知道的行权的时候，you donot owe any tax.
只有在出售的时候，需要根据三个要素分步骤计算tax liability：
1. the grant date
2. the exercise date
3. the profit make.
前两个要素将决定这个profit 是a Long term capital gain taxed at a lower rate, or a short capital gain which will be fully taxed.

A. Qualifying Disposition:
---at least 2 years after offering (grant date)
---at least 1 year after purchasing (exercise date)

report discount(discount* offering market price) as ESPP ordinary income at 1040 line 7
report profit of sale to Schedule D as LTCG.
=(sale at market price - cost at discount price - the discout taken at offering market price)

B. Disqualifying Disposition:
一般employer 会 report bargain element in your W-2 as ordinary income.

If less than 1 year of purchase
report bargain element (discount at purchasing price) included in W-2 as ordinary income
report profit of sale to Schedule D as STCG
= (sale at market price - cost at exercise market price)

If more than 1 year of purchase but less than 2 year of offering
same thing happen in first step but the profit will be reported in Schedule D as LTCG.

Please note ESPP will not subject to FICA and employer will not be required to withhold income tax for you. You pay tax based on your return.

Free tax return 所需要的文件

在免费服务List 上的ID， 在收到tax documents之后即可与我联系。

为保护个人隐私，我不需要你的Name，address and SSN, 你只需要提供你的准确收入和家庭成员人数，我将根据你的statement 来prepare income tax module. 你所需要做的就是在我返回的return 上填上你的个人信息，签名，然后邮寄回IRS。

有兴趣尝试Turbotax DIY 的，可参考我去年的Tip 帖，我也可以提供简单的邮件和电话咨询。但请注意，我无法通过简单的只言片语和不完整的信息来回答你的有关问题。

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