Can I recover the AMT I paid from exercising ISOs?
Yes – AMT paid because you exercised and held ISOs usually becomes a minimum tax credit you can recover in later years. The AMT on the ISO bargain element is largely a timing difference, not a permanent extra tax. In years when your regular tax exceeds your tentative AMT, the credit lets you reclaim the earlier payment, sometimes over several years until it's used up. When you eventually sell the ISO shares in a qualifying disposition, your AMT cost basis (which includes the previously taxed spread) is higher, which also helps reconcile the two systems. Track Form 8801 and your dual-basis records carefully, because the credit can be substantial and easy to lose if you forget it exists. Many people leave thousands on the table by not claiming it.