Increased AMT Exemption for 2003 and 2004
The 2001 Tax Act temporarily increased the alternative minimum tax (AMT) exemption by $2,000 ($4,000 for joint filers) for tax years 2001-2004. The 2003 exemption amount was $35,750 ($49,000 Married Filing Jointly). Under the new law, the exemption is increased $40,250 ($58,000 Married Filing Jointly).
Who Benefits?
Those who were affected by the AMT in the past might be better off than before. The maximum potential benefit is $1,260 ($2,520 Married Filing Jointly). Use our AMT Estimator to find out how you'll be affected.
Our Advice
Individuals planning to exercise and hold incentive stock options should visit with their tax professional to discuss how to plan for the AMT and take advantage of the increased AMT exemption.
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