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Understanding the Alternative Minimum Tax (AMT)
Description
The Alternative Minimum Tax (AMT) can be confusing, especially when selling stocks or participating in employee stock ownership plans (ESOPs). Dr. Friday explains how AMT kicks in when W-2 forms only show the basis, leaving capital gains unreported. Avoid IRS troubles by learning to account for both AMT and capital gains in your tax filings. Stay ahead with these essential tips.
Transcript:
G’day, I’m Dr. Friday, president of Dr. Friday’s Tax and Financial Firm. To get more info, go to www.drfriday.com. This is a one-minute moment.
The Alternative Minimum Tax (AMT)—people often forget about this. It often kicks in when you sell stocks from a business, such as through an ESOP program. You might think the W-2 includes everything, but it only shows the basis. Capital gains still need to be reported. This is when AMT often applies and lands people in my office dealing with the IRS. Don’t forget to file your capital gains and account for AMT. Need help? Call us at 615-367-0819.
You can catch the Dr. Friday Call-In Show live every Saturday afternoon from 2 to 3 p.m. right here on 99.7 WTN.