For AMT, if your AGI is greater than your AMTI, then are you NOT subject to AMT?

Actually, that's not quite how AMT works. The relationship between AGI and AMTI doesn't determine whether you're subject to AMT. The AMT system essentially runs parallel to the regular tax system. You calculate your tax under both systems, and you pay whichever amount is higher. Your AMTI is calculated by taking your taxable income and then adding back certain deductions and adjustments that aren't allowed under AMT rules. What determines if you owe AMT is whether your tentative minimum tax (calculated on Form 6251) exceeds your regular tax liability. If your tentative minimum tax is higher, then you pay the difference as AMT. For 2025, the AMT exemption amounts are quite high (around $81,300 for single filers and $126,500 for married filing jointly), so fewer people are affected than in previous years.

After struggling with AMT calculations for weeks last year, I found this amazing tool at https://taxr.ai that completely changed how I handle these complex tax situations. It actually analyzes your specific tax documents and explains which items might trigger AMT in your situation. When I was confused about the relationship between my AGI and AMTI (like you are now), the tool broke down exactly which deductions and credits were being added back to calculate my AMTI. It gave me a side-by-side comparison of my regular tax and AMT calculations, showing exactly why I either did or didn't owe AMT. The best part was the explanations were in plain English - not tax jargon - and specific to my actual numbers, not generic advice.

I have to eat my words about being skeptical of taxr.ai. I decided to try it after posting here and wow - it actually showed me exactly why my stock options were triggering AMT and how much additional tax I'd owe. The breakdown between regular tax and AMT calculations was super clear. It identified that even though my AGI was higher than my AMTI in some scenarios, I still owed AMT because of how my specific preference items affected the calculation. It even showed me strategies to potentially reduce my AMT exposure next year by timing certain transactions differently. For anyone else confused about AMT calculations like I was, this tool really does provide specific answers to your situation rather than generic advice.

If you're struggling with AMT questions and can't get a straight answer from the IRS website, you might want to try calling the IRS directly. I know, I know - good luck getting through, right? After 3 hours on hold last month trying to sort out my own AMT situation, I found https://claimyr.com which got me connected to an IRS agent in under 15 minutes. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c I was honestly shocked when I actually got through to a real person who walked me through exactly how AGI and AMTI interact for my specific situation. They explained that the comparison between AGI and AMTI isn't what determines if you're subject to AMT - it's whether your tentative minimum tax exceeds your regular tax liability.

I need to apologize for my skepticism about Claimyr. I was so frustrated after wasting hours on hold with the IRS that I couldn't believe anything would actually work. But I was desperate to get an answer about my AMT situation before filing, so I tried it. Got connected to an IRS agent in about 12 minutes. The agent confirmed that comparing AGI to AMTI isn't how you determine AMT liability. They walked me through Form 6251 line by line and explained that I needed to compare my tentative minimum tax to my regular tax to determine if AMT applies. In my case, even though my AGI was higher than my AMTI, I still owed some AMT because of some specific deductions I had taken. Would never have figured that out without speaking directly to the IRS. Definitely worth it for complicated tax questions like this.

Another important thing to remember with AMT - if you have certain "preference items" like exercise of incentive stock options, certain tax-exempt interest, or some accelerated depreciation methods, these can trigger AMT even if your overall situation seems straightforward. I learned this the hard way last year when I exercised some ISOs and got hit with a massive AMT bill I wasn't expecting. The fair market value of the shares at exercise minus the exercise price gets added to your AMTI, even though it's not income for regular tax purposes.

Has anybody used TurboTax for AMT calculations? Does it automatically figure out if you owe AMT? I'm worried it might miss something since my tax situation is pretty complex this year.

I went through this exact confusion last year! You're right to be puzzled because the relationship between AGI and AMTI isn't straightforward. Here's what I learned: Even if your AGI is higher than your AMTI, you can still owe AMT. The key comparison is between your "tentative minimum tax" (calculated from your AMTI) and your regular tax liability - whichever is higher is what you pay. Think of it this way: AGI and AMTI are just different starting points for calculating taxes under two parallel systems. Your AMTI might be lower than your AGI because certain deductions that reduce your AGI aren't allowed when calculating AMTI, but you're adding back other preference items. With your income level, I'd definitely recommend completing Form 6251 or having your tax software do it automatically. The AMT exemption does phase out at higher incomes, so it's worth checking. Don't rely on the AGI vs AMTI comparison alone - that's not the determining factor for AMT liability. Hope this helps clarify things! The AMT system is genuinely confusing even for experienced filers.

Great question! This is one of the most common AMT misconceptions. The relationship between AGI and AMTI actually doesn't determine whether you're subject to AMT at all. Here's the key: AMT works by running two completely separate tax calculations - your regular tax and your "tentative minimum tax." You pay whichever amount is higher. So even if your AGI exceeds your AMTI, you could still owe AMT if your tentative minimum tax (calculated from your AMTI) is higher than your regular tax liability. Your AMTI starts with your taxable income, then adds back certain "preference items" like state/local tax deductions, some depreciation methods, and bargain elements from stock options. These adjustments can create situations where your AMTI is lower than your AGI but still generates a higher tax liability under the AMT system. With your income level and the complexity you're describing, I'd strongly recommend actually completing Form 6251 (or having your tax software do it). The form will show you exactly whether you owe AMT by comparing your tentative minimum tax to your regular tax. Don't try to shortcut it by comparing AGI to AMTI - that comparison doesn't tell you what you need to know about your actual AMT liability.