When do I need to pay AMT on my stock options?
September 4, 1999
Date: Tue, 10 Aug 1999
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?
Director, Strategic Alliances
San Mateo, CA
Date: Sat, 04 Sep 1999
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.