Avoid the ISO tax surprise

Could AMT surprise me?

6 min · 5 steps

Step 1 of 5

Could AMT surprise me?

At ISO exercise the spread (FMV minus strike, times shares) counts toward your AMT income. Plug your numbers in to see what's actually at stake.

Try it: ISO spread + exercise cost

The spread is your AMT exposure. Whether AMT actually triggers depends on your full tax picture.

SharesStrike$FMV$

Cash to exerciseshares × strike$2,000

AMT exposure (the spread)(FMV − strike) × shares$8,000

Quick check

US-focused. Last reviewed April 2026Tax math follows IRS Pub 525, §422, §1202 and current AMT rules. See sources in the methodology note.

Educational only. Not tax, legal, or financial advice. Talk to a qualified advisor.