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For AMT purposes, the deduction for state and local taxes paid is not allowed, which can raise AMTI and lead to an AMT liability.

Specific entries that modify taxable income for AMT purposes, including adjustments for standard deductions, personal exemptions, and certain itemized deductions.

The exercise of ISOs can trigger AMT liability because the difference between the exercise price and the fair market value of the stock is included in AMTI.

Credits that offset AMT liability, such as the foreign tax credit and certain nonrefundable personal credits.

The percentages used to calculate the AMT, typically 26% and 28% on income within certain brackets.

A deduction allowed to reduce AMTI, subject to phase-out based on income levels.

The gradual reduction of the AMT exemption amount as AMTI increases, eventually resulting in the full exclusion of the exemption at high income levels.

Adjustments to income mandated by the AMT rules, often resulting in higher taxable income for AMT purposes than for regular tax purposes.

Circumstances under which taxpayers must compute their tax liability under both the regular income tax system and the AMT system, paying the higher of the two.

Long-term capital gains and qualified dividends are taxed at the same rates under both AMT and regular tax, but they can affect the phase-out of the AMT exemption and indirectly increase AMT liability.

The total income subject to AMT, calculated by adding certain tax preference items to adjusted gross income.