The alternative minimum tax, or AMT, is a parallel tax system designed to make sure higher earners can't deduct their way to a very low bill. For 2026, the exemption that shields income from AMT drops for married filers, and the rate at which that exemption phases out doubles — from 25% to 50%.

In practical terms: if you're planning to exercise incentive stock options this year, the AMT bill on that exercise could be significantly larger than it would have been in 2025 — even if the stock's value hasn't moved. Anyone holding unexercised ISOs should run a projection before pulling the trigger, not after.

The Bonus Trap

Here's where it gets counterintuitive. Several 2026 provisions — including the SALT deduction cap — phase out based on modified adjusted gross income, not tax bracket. The raised SALT cap of $40,400 only applies below $505,000 in MAGI; above that, the benefit disappears entirely by the time you hit $600,000, and you're back to the old $10,000 cap.

That means an executive sitting near that threshold can take a bonus, a vested Restricted Stock Unit tranche, or a strong commission quarter, and watch it push them across a line that costs more in lost deductions than the bonus itself was worth. At this income level, the question isn't what you earn — it's what stays out of your MAGI in the first place.

The Piece Most Plans Miss

Every strategy above is a defensive move — timing, projections, deferral. None of it changes the underlying problem: as long as growth shows up on a 1099 or a W-2, it's exposed to whatever threshold Congress sets next. The Kai-Zen strategy works differently. Contributions grow inside a permanent life insurance structure, matched by bank financing at roughly 3:1, and the growth comes out tax-free in retirement — none of it touching your reportable MAGI along the way.

For executives sitting right in the AMT and SALT phase-out zone, that's not a minor detail. It's the difference between a bonus that quietly costs you money and one that builds wealth without triggering the next stealth tax.

Before You Accept Your Next Bonus or Exercise an Option

Kent Cornell, CFP®, helps executives and business owners run the numbers before these decisions — not after the tax bill arrives.

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The Power to Cast Out | Jonathan Cahn Sermon

“The Power to Cast Out” by Jonathan Cahn focuses on the spiritual authority and power that Jesus gives His followers to stand against evil and the forces that oppose God. Cahn draws from Jesus’ teachings about casting out demons and emphasizes that believers should not live in fear of darkness or spiritual opposition. Instead, Christians are called to recognize the authority of Christ, remain grounded in God’s Word, and depend on the power of God through prayer and faith.

The message also emphasizes that spiritual victory begins with surrendering to God rather than relying on personal strength. Cahn encourages believers to examine their lives, reject influences that pull them away from God, and stand firmly in their faith. The overall message is a call to spiritual courage and discernment—Christians should understand their identity in Christ, remain close to God, and confidently resist evil while recognizing that the ultimate authority belongs to Jesus.