How the AMT Still Catches High-Income Earners in 2026

The Alternative Minimum Tax (AMT) was designed to ensure wealthy taxpayers pay a minimum tax, but it still ensnares many high-income earners with large deductions. In this episode, Lucas and Luna break down how the AMT works, why it's triggered by state and local tax deductions, and who's most at risk in 2026. Using a concrete example of a taxpayer earning $500,000 with significant itemized deductions, they explain the 26% and 28% rates, exemption phaseouts, and planning strategies like limiting SALT deductions or bunching charitable contributions. They also touch on how inflation indexing has reduced but not eliminated AMT exposure. If you're a high earner with big deductions, this episode helps you plan ahead. #AlternativeMinimumTax #AMT #HighIncomeEarners #TaxPlanning #SALT #StateAndLocalTax #ItemizedDeductions #ExemptionPhaseout #2026Tax #TaxStrategy #IRS #Finance #Business #TaxPodcast #FexingoBusiness #BusinessPodcast #TaxTips #WealthManagement Keep every episode free: buymeacoffee.com/fexingo