#tax-planning
2 articles
FSA Open Enrollment: Expect $1,500 of Bills? Elect $1,251 in the 12% Bracket, $1,662 in the 37%
The right health FSA election depends on your tax rate, not just your expected bills. We ran a $600 to $3,000 spending range through five tax brackets: the best election rises from $1,251 to $1,662, and a $680 carryover adds $680 to each.
$80K AMT Bill on a $0 Stock: How ISO Exercise Goes Wrong
Marcus exercised 12,000 ISOs at $7 strike when FMV was $42. The 2022 IPO peaked, then crashed 80% by tax day. He owed $80K of AMT on a position now worth less than the strike. Here's the exercise math, the exit options, and what the calculator should have shown before he wired.