Just to add another perspective on legitimate AMT reduction strategies - charitable donations through a Donor Advised Fund (DAF) can be extremely effective. By bunching multiple years of donations into a single tax year, you can potentially push yourself over the standard deduction threshold and get more tax benefit while still distributing the actual donations over time. This works well with AMT planning because charitable contributions are fully deductible under both regular tax and AMT systems. Combined with careful timing of income recognition, this has saved me significant AMT exposure over the last few years.

One thing nobody has mentioned yet regarding AMT is the impact of timing your income recognition for incentive stock options (ISOs). If you exercise ISOs but don't sell the shares in the same year, you can create a HUGE AMT liability because the bargain element (difference between exercise price and fair market value) is included in AMT income but not regular taxable income. I learned this the hard way and ended up with a $45k AMT bill I wasn't expecting. If you have ISOs as part of your compensation, make sure you understand how they interact with AMT before exercising!

2 But what about the Monaco-US tax treaty? Doesn't that change how much they have to pay on US tournament winnings? I think there might be a lower rate for residents of countries with tax treaties.

This is such a fascinating topic! I had no idea about the "jock tax" situation where athletes get taxed by every state they compete in. That must make tax season an absolute nightmare for these players. It's interesting how Monaco's lack of a tax treaty with the US actually works against athletes living there - they don't get any of the benefits that residents of countries like Switzerland might get. Makes you wonder if some of these players might actually be better off tax-wise living somewhere else with better treaty arrangements. The duty days calculation for endorsement income is mind-blowing too. Imagine having to track every single day of work and which state/country you were in. No wonder these athletes need armies of accountants and tax specialists!

Another option to get your AGI: If you used tax software last year, just log back into your account. Most of the major ones (TurboTax, H&R Block, TaxAct, etc.) keep your returns on file. I just logged into mine from last year and found my AGI in like 2 minutes. For your specific calculation question - your AGI is basically: Total income (wages + any other income) minus certain "above-the-line" deductions. Those specific college expenses might qualify for the American Opportunity Credit or Lifetime Learning Credit rather than direct AGI reduction.

Quick tip that helped me: if ur trying to e-file and need last years AGI, some tax software lets u answer "0" or "Did not file" depending on ur situation. Worked 4 me when I couldn't remember my exact AGI! If u need the exact calculation process, AGI is basically: total income - adjustments. The adjustments are specific things like student loan interest, self-employment tax, health insurance if self-employed, etc.

Just to add a practical tip - when my wife and I were in a similar situation (I make $150k, she makes $60k), we found that using tax software to run a "what-if" scenario in January helped us make adjustments early in the year. We took our previous year's return, updated the expected income for the current year, and then looked at the projected result. It showed us we'd be short about $3,200 in withholding, so I updated my W-4 to withhold an extra $275 per month. Worked perfectly - we got a small refund instead of owing money.

Great question! I went through this exact same situation last year when my spouse and I had a similar income gap ($140k vs $75k). One thing that really helped us was understanding the "marriage penalty" concept - when both spouses work, the combined income can push you into higher tax brackets than either would face individually. This is especially true with your income levels. For your W-4 forms, definitely choose "married filing jointly" as others have mentioned. However, I'd strongly recommend using the IRS Tax Withholding Estimator mid-year to check if you're on track. We discovered we were under-withholding by about $2,800 and were able to adjust before it became a problem. Also consider having the higher earner (you at $145k) make the withholding adjustments rather than splitting it between both W-4s. It's often simpler administratively and gives you more control over the process. You can always adjust quarterly if needed. The key is being proactive about it rather than getting surprised at tax time!

Don't forget that if your mother was married, her spouse might have special filing options. They can file jointly for the year of death if they haven't remarried before the end of the tax year. This often results in a lower overall tax burden.

I went through this exact situation with my father last year and want to emphasize a few important points that might help: First, don't stress too much about the "Personal Representative" signature issue while probate is pending. The IRS is generally understanding about this timing gap, and you can always file an amended return later if needed once you're officially appointed. Second, regarding the estimated payment with your extension - err on the side of caution and pay a bit more rather than less. The IRS charges penalties and interest on underpayments, but they'll refund any overpayment when you file the actual return. Given your mom's history of owing $11k in 2021, I'd estimate conservatively high for 2022. One thing I wish someone had told me: keep meticulous records of everything you pay on behalf of the estate, including any tax payments. You can reimburse yourself from estate funds later, and good documentation makes the probate process much smoother. Also, consider whether your state has any specific requirements for deceased taxpayer filings - some states have different rules than the federal process. You're doing the right thing by being proactive with the extension. Better to file late with an extension than miss the deadline entirely.