Enrolled Agent Exam [Part 1] 52, Alternative Minimum Tax (AMT) - Individuals

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: • How the Alternative Minimum Tax (AMT) operates as a parallel tax system calculated on Form 6251. • Why state and local tax deductions, a key itemized deduction, are fully added back to determine AMT income. • The specific AMT adjustment required for the bargain element when Incentive Stock Options (ISOs) are exercised. • How the significant 2025 AMT exemption is phased out at higher income levels, a common exam testing point. • The difference between deferral and exclusion items and how it impacts the creation of the AMT credit carryforward. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or Youtube Channel: https://www.youtube.com/@Open-exam-prep