When do I need to pay AMT on my stock options?
September 4, 1999
Date: Tue, 10 Aug 1999
From: Joe
Ok, here goes…
Taxable income about XXXX after deductions (mortgage making up the bulk of them), filing jointly, my spouse has not worked this year. I’m looking at a spread of about $X on XXXX options that I’d like to exercise to get the capital gains clock going. Would I need to pay AMT now or in December or April 2000?
Joe Thomas
Director, Strategic Alliances
Viador, Inc.
San Mateo, CA
Answer
Date: Sat, 04 Sep 1999
Hello Joe,
The answer to your question is, “It depends.”
If your 1999 federal and California withholding are adjusted so that you pay in at least 105% of the tax on last year’s tax returns, you will be “protected” from penalties for underpayment of estimated tax.
The balance of your tax liability will be due April 15, 2000.
Good luck!
Mike Gray