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If you have incentive stock options then theres something called the alternative minimum tax that you really need to understand. It may seem big and scary but today were going to break down what AMT is, the reason why it even exists, why you need to think about it whenever you have ISOs, some planning opportunities, and then also the AMT credit. Alright, lets get started. Before we get too far into this, its important to understand the basics around incentive stock options and the way that theyre taxed. I did another video that talks about that so if you havent watched that then I would encourage you to watch that first then come back to this one. But more specifically around what were talking about here with AMT, its about exercising your options and the bargain element. So Ill do a quick explanation of what that is. If we walk through an example kind of similar to what I did in the last video. Assume that we have been granted a thousand ISOs and i