A. Here are 5 tips offered by TurboTax to lower your AMT tax -
1. Delay Your Fourth Estimated Tax Payment
You can limit your risk of having to pay AMT every year by timing certain events.
For example: if you are paying AMT this year, and you pay state or local estimated taxes, delay making the fourth payment until after December 31, 2017.
Want to take an even more conservative approach toward avoiding AMT? You can make your fourth estimated tax payment after December 31 each year.
2. Sell Incentive Stock Options
If you receive incentive stock options (ISO), sell them in the same year you buy the stock if the stock price falls before year-end. You'll avoid having to add back the difference between the amount paid and the fair market value to the AMT calculation.
3. Split Payment of Large Medical Bills
Some of the medical bills you're able to deduct on your tax return are added back for AMT purposes. You may end up paying additional tax (AMT) as a result. A suggestion: pay any large medical bills you have over two different years, rather than one.
4. Have Employer Pay Business Expenses
Consider asking your employer to pay some of your employee business expenses in exchange for a lowered salary. Doing so will lower your adjusted gross income (AGI) and your regular income tax. Plus, it will reduce the possibility that you'll have to pay AMT.
5. Group Your Deductible Expenses
If you cannot itemize deductions every year, try to group your deductible expenses (such as taxes, donations, mortgage interest, and so forth) into alternating years.