Since 2001, we provide tax expertise & strategies for: Corporations, Partnerships, LLCs & Trusts.
5
What is AMT – Alternative Minimum Tax
The Alternative Minimum Tax was designed to ensure that anyone who benefits from certain tax deductions pays at least a minimum amount of tax.
Tax laws provide tax benefits for special tax deductions and tax credits for certain expenses. These benefits can drastically reduce taxpayers’ taxable income, thus fewer taxes will be paid. Congress created the Alternative Minimum Tax in 1969 and AMT became enforced in 1970; targeting taxpayers who could claim many tax deductions but owed little or no income tax.
Currently the AMT is not indexed for inflation, thus a growing number of middle-income taxpayers are discovering they are subject to the AMT and owe more taxes that they were expecting. If your taxable income and any tax adjustment are higher than the AMT exemption amount, you will most likely pay the AMT. The AMT exemption amounts are set by law for each filing status.
| 1986–1990 | 1991–1992 | 1993–2000 | 2001–2002 | 2003–2005 | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Individual Tax rate | 21% | 24% | 26/28% | 26/28% | 26/28% | 26/28% | 26/28% | 26/28% | 26/28% | 26/28% | 26/28% | 26/28% |
| Married Filing Jointly | 40,000 | 40,000 | 45,000 | 49,000 | 58,000 | 62,550 | 66,250 | 69,950 | 70,950 | 72,450 | 74,450 | TBD |
| Single or Head of Household | 30,000 | 30,000 | 33,750 | 35,750 | 40,250 | 42,500 | 44,350 | 46,200 | 46,700 | 47,450 | 48,450 | TBD |
Taxpayers can find more information about the Alternative Minimum Tax and how it impacts them by accessing IRS Form 6251, Alternative Minimum Tax —Individuals, and its instructions below.
Click on the link below:
- AMT Assistant
- IRS Form 6251, Alternative Minimum Tax—Individuals
Important Tax Disclosure
IRS Circular 230 Legend: Any advice contained herein was not intended or written to be used, and cannot be used, for the purpose of avoiding U.S. federal, state, or local tax payments or penalties. Unless otherwise specifically indicated, you should assume that any statement in this website or articles that relating to any U.S. federal, state, or local tax matter was written in connection with the promotion or marketing. Disclaimer: Any articles herein is designed for general information only. The information presented at this site should not be construed to be formal legal or tax advice. Each taxpayer should seek advice based on the taxpayer's particular circumstances.
IRS Circular 230 Legend: Any advice contained herein was not intended or written to be used, and cannot be used, for the purpose of avoiding U.S. federal, state, or local tax payments or penalties. Unless otherwise specifically indicated, you should assume that any statement in this website or articles that relating to any U.S. federal, state, or local tax matter was written in connection with the promotion or marketing. Disclaimer: Any articles herein is designed for general information only. The information presented at this site should not be construed to be formal legal or tax advice. Each taxpayer should seek advice based on the taxpayer's particular circumstances.
