Alternative Minimum Tax Amounts
26%, up to Alternative Minimum Taxable Income (AMTI) of
28% on AMTI over the above amounts
AMT Exemption Amounts Before Phase-
Taxpayers Filing Single or Head of Household:
Married Filing Jointly
or Qualifying Widower:
Married Filing Separately:
The AMT exemption is reduced by 25% of the amount that alternative minimum taxable income exceeds the threshold amounts listed below.
Single or Head of Household
Married Filing Jointly or Qualifying Widowers
Married Filing Separately
AMT Exemption -
The lesser of $50,600
or the child's earned income plus $6,950
The lesser of $51,900
or the child's earned income plus $7,150
The lesser of $52,800
or the child's earned income plus $7,250
Have a Question about the Alternative Minimum Tax?
The AMT Advisor Can Help!
Answers to your questions about AMT law -
Assistance with AMT tax form preparation -
Alternative Minimum Tax -
Minimum Tax -
Unfortunately, the form instructions are often of little help to the average
taxpayer. The AMT Advisor is a professional tax accountant with extensive
return preparation experience, able to assist you with the preparation of AMT tax forms and the calculation of specific items.
Answers to your questions about incentive stock options and the
minimum tax credit -
stock options (ISOs) and the Minimum Tax Credit are baffling to most
taxpayers, and the incorrect application of the rules can cost a taxpayer who has exercised ISOs thousands of dollars in overpaid taxes and missed credits. The AMT Advisor has the expertise to help you make sure that you don't pay more AMT than you should because of the exercise of ISOs, and that you are able to use the Minimum Tax Credit generated by the exercise of ISOs to your full advantage.
Assistance with correspondence and questions from the IRS -
letter from the IRS about the AMT? Don't understand what they are talking
about or what they want? The AMT Advisor can review the correspondence,
explain what it means, and advise you on how best to proceed in response to it.
AMT tax planning -
in future years.
Free AMT Information
The AMT Advisor website provides free explanatory information about specific aspects of the AMT and the AMT forms and their instructions. Click on the links below to go to the page with the information you need.
Why Did Congress Create the Alternative Minimum Tax?
In the 1960s, studies by the Treasury Department showed that some high-
income taxpayers were through legal tax planning able to either greatly
reduce the amount of tax they paid or pay no tax at all. Congress became
concerned that the fact that these taxpayers were through legal methods able to pay an effective tax rate that was much lower than other taxpayers with lower taxable income was incompatible with the progressive nature of the tax system, under which a larger portion of the overall tax burden is intended to be shouldered by taxpayers with higher incomes. Congress was also concerned that the appearance that high income taxpayers were favored under the tax system undermined the public’s faith in the system. To address these concerns, the original alternative minimum tax provisions were added to the tax code to make sure that all high-
Because high income taxpayers were largely able to reduce their tax liabilities to unacceptable levels through the use of certain deductions, credits, and exclusions, the AMT focuses primarily on eliminating the benefit of these items to high income taxpayers. Since 1969, the alternative minimum tax system has undergone significant changes, but the focus of the system has remained on eliminating tax benefits that can be legally but unfairly (in the eyes of Congress and the IRS) manipulated by high-
Although there have been many proposals put forth in recent years to either eliminate or reform the alternative minimum tax system, it is unlikely, largely for political reasons, that any substantive changes will be made in the near future. The landscape may shift as more taxpayers become subject to the AMT and these taxpayers begin to exert more political pressure on their elected representatives. However, because there is no guarantee that meaningful changes to the AMT are coming soon, taxpayers who are subject to the AMT are well advised to consult with a tax advisor to see what they can do to minimize its impact.
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