The Alternative Minimum Tax (AMT)

The Alternative Minimum Tax (AMT) is designed to ensure that individuals who benefit from certain deductions and tax preferences pay at least a minimum level of tax. This guide provides an overview of how the AMT works, including the key triggers that may subject a taxpayer to the AMT and the differences between regular tax and AMT calculations.

Highlights:

• Overview of AMT: Basic explanation of the AMT system and its purpose.

• Key Triggers: Common factors that can lead to AMT liability, such as certain deductions and credits.

• Exemption Amounts: General information on the AMT exemption amounts based on filing status.

• Tax Calculation: Brief description of how AMT is calculated compared to regular income tax.