2020 AMT Exemption
For 2020, the AMT Exemption figures are $113,400 (Exemption, joint returns or surviving spouses), $72,900 (Exemption, unmarried individuals), $56,700 (Exemption, married individuals filing separate returns) and 5 more figures below.
| Item | Joint returns or surviving spouses | Unmarried individuals | Married individuals filing separate returns | Estates and trusts |
|---|---|---|---|---|
| Exemption | $113,400 | $72,900 | $56,700 | $25,400 |
| Exemption phaseout threshold | $1,036,800 | $518,400 | $518,400 | $84,800 |
Effective 2020-01-01Source: Rev. Proc. 2019-44 (IRS)Verified 2026-09-03
Compared with 2019
| Item | 2019 | 2020 | Change |
|---|---|---|---|
| Exemption, joint returns or surviving spouses | $111,700 | $113,400 | +$1,700 (+1.5%) |
| Exemption, unmarried individuals | $71,700 | $72,900 | +$1,200 (+1.7%) |
| Exemption, married individuals filing separate returns | $55,850 | $56,700 | +$850 (+1.5%) |
| Exemption, estates and trusts | $25,000 | $25,400 | +$400 (+1.6%) |
| Exemption phaseout threshold, joint returns or surviving spouses | $1,020,600 | $1,036,800 | +$16,200 (+1.6%) |
| Exemption phaseout threshold, unmarried individuals | $510,300 | $518,400 | +$8,100 (+1.6%) |
| Exemption phaseout threshold, married individuals filing separate returns | $510,300 | $518,400 | +$8,100 (+1.6%) |
| Exemption phaseout threshold, estates and trusts | $83,500 | $84,800 | +$1,300 (+1.6%) |
Exemption
Exemption phaseout threshold
$25,400$1,036,800
One dot per column of the table, on a scale running from the smallest of these amounts to the largest. The scale is logarithmic - each faint line is ten times the one before it, so that the amounts crowded at the low end stay far enough apart to read. The table states which dot is which.
Who it applies to
Taxpayers who are subject to the Alternative Minimum Tax under IRC § 55 for taxable years beginning in 2020
What changed this year, and why
For 2020, the IRS set the Alternative Minimum Tax exemption amounts under § 55(d)(1). The exemption is $113,400 for joint returns and surviving spouses, $72,900 for unmarried individuals (other than surviving spouses), $56,700 for married individuals filing separate returns, and $25,400 for estates and trusts. The exemption begins to phase out when alternative minimum taxable income exceeds $1,036,800 for joint returns and surviving spouses.
Common questions
- How does the AMT exemption phase out?
- The AMT exemption phases out when a taxpayer's alternative minimum taxable income exceeds a threshold. For joint returns and surviving spouses in 2020, the phaseout begins at $1,036,800.
- What is the AMT exemption used for?
- The exemption applies to alternative minimum tax liability. It reduces the amount of alternative minimum taxable income that is subject to the AMT.
What the alternative minimum tax actually is
The alternative minimum tax is a parallel income tax that runs alongside the regular federal income tax. It is designed to ensure that taxpayers with higher economic incomes pay at least a minimum amount of tax, even if they benefit from favorable tax treatments or deductions that significantly reduce their regular tax liability. The AMT recalculates tax by applying its own set of rules to certain income items and deductions, then compares that result to the regular tax. If the AMT calculation produces a higher figure, the taxpayer owes the difference as an additional tax. Taxpayers use Form 6251 to work through this computation and determine whether they owe any AMT for the year.
The AMT is a separate tax that is imposed in addition to your regular tax. It applies to taxpayers who have certain types of income that receive favorable treatment, or who qualify for certain deductions, under the tax law. These tax benefits can significantly reduce the regular tax of some taxpayers with higher economic incomes. The AMT sets a limit on the amount these benefits can be used to reduce total tax.
Instructions for Form 6251 (2020), Alternative Minimum Tax - Individuals (IRS)
When you have to file Form 6251
You must attach Form 6251 to your tax return if any one of several conditions is met. The most common trigger is that your tentative minimum tax (Form 6251, line 7) exceeds your regular tax liability limit (line 10). You also must file if you claim certain tax credits - a general business credit with a positive amount on Form 3800, the qualified electric vehicle credit, the personal-use portion of the alternative fuel vehicle refueling property credit, or the prior-year minimum tax credit - even when you would not otherwise owe AMT. A fourth condition applies when the total of your AMT adjustments on lines 2c through 3 is negative and, without those negative items, line 7 would exceed line 10. In short, if your economic income is high enough that preference items or credits create a meaningful difference between the two tax calculations, Form 6251 must be filed.
Who Must File Attach Form 6251 to your return if any of the following statements are true. 1. Form 6251, line 7, is greater than line 10. 2. You claim any general business credit, and either line 6 (in Part I) of Form 3800 or line 25 of Form 3800 is more than zero. 3. You claim the qualified electric vehicle credit (Form 8834), the personal use part of the alternative fuel vehicle refueling property credit (Form 8911), or the credit for prior year minimum tax (Form 8801). 4. The total of Form 6251, lines 2c through 3, is negative and line 7 would be greater than line 10 if you didn’t take into account lines 2c through 3.
Instructions for Form 6251 (2020), Alternative Minimum Tax - Individuals (IRS)
How the exemption is taken away as income rises
The AMT exemption shrinks as your alternative minimum taxable income (AMTI) rises above a threshold. The worksheet shows that once your AMTI on Form 6251, line 4, reaches certain levels - $810,000 for single or head of household filers, $1,490,400 for married filing jointly or qualifying widow(er), or $745,200 for married filing separately - the exemption is reduced to zero entirely. Between those full-loss levels and the phaseout start thresholds, the exemption is reduced by 25 cents for every dollar of AMTI above the threshold. The starting thresholds for the 25% phaseout are $518,400 for single or head of household filers, $1,036,800 for married filing jointly or qualifying widow(er), and $518,400 for married filing separately. Taxpayers whose income falls below the lower threshold keep their full exemption; those above it lose a portion; and those above the upper limit lose it completely.
Exemption Worksheet— Line 5 Keep for Your Records Note. If Form 6251, line 4, is equal to or more than: $810,000 if single or head of household, $1,490,400 if married filing jointly or qualifying widow(er), or $745,200 if married filing separately, your exemption is zero. Don’t complete this worksheet; instead, enter the amount from Form 6251, line 4, on line 6 and go to line 7. 1. Enter: $72,900 if single or head of household; $113,400 if married filing jointly or qualifying widow(er); $56,700 if married filing separately . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1. 2. Enter your alternative minimum taxable income (AMTI) from Form 6251, line 4 . . . . . . 2. 3. Enter: $518,400 if single or head of household; $1,036,800 if married filing jointly or qualifying widow(er); $518,400 if married filing separately . . . . . . . . . . . . . . . . . . . . . . . 3. 4. Subtract line 3 from line 2. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4. 5. Multiply line 4 by 25% (0.25) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5. 6. Subtract line 5 from line 1. If zero or less, enter -0-. Also, enter this amount on Form 6251, line 5, and go to Form 6251, line 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ▶ 6.
Instructions for Form 6251 (2020), Alternative Minimum Tax - Individuals (IRS)
The two AMT rates and where the second one starts
The alternative minimum tax uses two rates: 26% and 28%. For 2020, the 26% rate applies to the first $197,900 of taxable excess for most filers ($98,950 for married individuals filing separately). Any taxable excess above that threshold is taxed at the higher 28% rate. The worksheet calculation reflects this by multiplying the amount by 26% when it falls within the lower bracket, or by 28% and then subtracting a fixed adjustment when it exceeds the threshold. This two-bracket structure means that as your AMT income grows, the marginal rate on the additional income steps up from 26% to 28%.
All others: If line 3 is $197,900 or less ($98,950 or less if married filing separately), multiply line 3 by 26% (0.26). Otherwise, multiply line 3 by 28% (0.28) and subtract $3,958 ($1,979 if married filing separately) from the result.
Instructions for Form 6251 (2020), Alternative Minimum Tax - Individuals (IRS)
Your tentative minimum tax caps how far certain credits can reduce your regular tax
Your tentative minimum tax, calculated on Form 6251 line 9, sets a ceiling on how much certain nonrefundable credits can reduce your regular tax liability. The credits subject to this limit are listed under the Who Must File section of the Form 6251 instructions. To determine how much of these credits you can actually claim, you must compare the total of your regular tax and AMT against the limit imposed by your tentative minimum tax. This ensures that even taxpayers who benefit from credits cannot reduce their total tax below the amount calculated under the alternative minimum system. The tentative minimum tax thus acts as a floor on the total tax you owe after applying credits.
figure the tax liability limit on the credits
Instructions for Form 6251 (2020), Alternative Minimum Tax - Individuals (IRS)
Sell ISO stock too soon and you owe a reconciling AMT adjustment
If you sell shares acquired through exercising an incentive stock option before meeting the required holding periods, the sale is treated as a disqualifying disposition. When this occurs, you must recognize ordinary income equal to the difference between the fair market value of the stock on the exercise date and the exercise price. For alternative minimum tax purposes, if you already included this amount as an adjustment in the year you exercised the option, you must refigure the ordinary income adjustment to account for the disqualifying disposition. This prevents double-counting of the same spread. The adjustment is reported on Form 6251 and affects your AMT calculation for the year of sale. Disqualifying dispositions are among the items that must be separately refigured when calculating alternative minimum taxable income.
disqualifying disposition of stock
Instructions for Form 6251 (2020), Alternative Minimum Tax - Individuals (IRS)
How each figure was verified
Each number below was read from a stored copy of the document named beside it, and checked to occur word for word in the quoted sentence. The digest is of that stored text.
Rev. Proc. 2019-44 (IRS)
- Exemption, joint returns or surviving spouses
Joint Returns or $113,400 Surviving Spouses
- Exemption, unmarried individuals
Unmarried Individuals (other than $72,900 Surviving Spouses)
- Exemption, married individuals filing separate returns
Married Individuals Filing Separate $56,700 Returns
- Exemption, estates and trusts
Estates and Trusts $25,400
- Exemption phaseout threshold, joint returns or surviving spouses
For taxable years beginning in 2020, the amounts used under § 55(d)(2) to determine the phaseout of the exemption amounts are: Joint Returns or $1,036,800 Surviving Spouses
- Exemption phaseout threshold, unmarried individuals
Unmarried Individuals (other than $518,400 Surviving Spouses)
- Exemption phaseout threshold, married individuals filing separate returns
Married Individuals Filing Separate $518,400 Returns
- Exemption phaseout threshold, estates and trusts
Estates and Trusts $84,800