The AMT Advisor
Answers to All Your Alternative Minimum Tax Questions

Click here for instructions on how to submit a question or a
service request to the AMT Advisor, or scroll down to learn more
about what the AMT Advisor can do for you.

Answers to your questions about AMT law - Alternative Minimum Tax law
is difficult for a person without specialized tax training to understand. Even
with the necessary information resources, it can take an average taxpayer
hours to determine the answer to a question about the AMT. The AMT
Advisor, a tax accountant with a Masters of Law (LL.M.) degree in Taxation
from one of the nation's leading tax law programs, can provide the answers to
all your AMT law questions, simple and complex, and explain the AMT to you
in terms you can understand.

Assistance with AMT tax form preparation - Filling out Form 6251,
Alternative Minimum Tax - Individuals, and Form 8801, Credit for Prior Year
Minimum Tax - Individuals, Estates and Trusts, can be very confusing.
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
- The AMT rules regarding the exercise of incentive
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 - Got a
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 - The AMT Advisor can advise you how to avoid the AMT
in future years.

Click here for instructions on how to submit a question to the
AMT Advisor.
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.

What is the AMT and how is it calculated?

AMT Adjustments

AMT Preferences

AMT Exemption

AMT Forms

Minimum Tax Credit


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-income taxpayers would have to pay a
minimum amount of tax.

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-income taxpayers. The
AMT rules have been repeatedly modified throughout the years because they
have been found to be ineffective in achieving the objective of making all high
income taxpayers pay a minimum amount of tax. Despite these changes, the
AMT continues to be fairly ineffective in producing the results that Congress
intended it to create.

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
.

Need general individual income tax information?
Go to
FTI Publishing's 2013 Individual Income Tax Guide.
The AMT Advisor

How to submit a
Advisor

How the AMT is
calculated

Minimum Tax Credit
Information

***************************
Alternative Minimum
Tax Amounts:

AMT Rates:
26%, up to
Alternative Minimum
Taxable Income of  
$175,000 ($87,500 for
Married Filing
Separately)

28% on AMTI over
$175,000 ($87,500 for
Married Filing
Separately)

AMT Exemption
Amounts Before
Phase-Out:

Taxpayers Filing
Single or Head of
Household :
2007 - $44,350
2008 - $46,200
2009 - $46,700
2010 - $47,450
2011 - $48,450

Married Filing
Jointly or Qualifying
Widower:
2007 - $66,250
2008 - $69,950
2009 - $70,950
2010 - $72,450
2011 - $74,450

Married Filing
Separately:
2007 - $33,125
2008 - $34,975
2009 - $35,475
2010 - $36,225
2011 - $37,225

How to submit a
question to the AMT
Advisor

How the AMT is
calculated

Minimum Tax Credit
Information

***************************
Alternative Minimum
Tax Amounts:

AMT Rates:
26%, up to
Alternative Minimum
Taxable Income of  
$175,000 ($87,500 for
Married Filing
Separately)

28% on AMTI over
$175,000 ($87,500 for
Married Filing
Separately)

AMT Exemption
Amounts Before
Phase-Out:

Taxpayers Filing
Single or Head of
Household :
2007 - $44,350
2008 - $46,200
2009 - $46,700
2010 - $47,450
2011 - $48,450

Married Filing
Jointly or Qualifying
Widower:
2007 - $66,250
2008 - $69,950
2009 - $70,950
2010 - $72,450
2011 - $74,450

Married Filing
Separately:
2007 - $33,125
2008 - $34,975
2009 - $35,475
2010 - $36,225
2011 - $37,225

How to submit a
question to the AMT
Advisor

***************************
Free AMT
Information

What is the AMT?

AMT Adjustments

AMT Preferences

AMT Exemption

AMT Forms

Minimum Tax Credit

***************************
Alternative
Minimum Tax
Amounts

AMT Rates:
26%, up to Alternative
Minimum Taxable
Income of  $179,500
($89,750 for Married
Filing Separately)

28% on AMTI over
$179,500 ($89,750 for
Married Filing
Separately)

AMT Exemption
Amounts Before
Phase-Out

Taxpayers Filing
Single or Head of
Household :
2009 - $46,700
2010 - $47,450
2011 - $48,450
2012 - $50,600
2013 - $51,900

Married Filing Jointly
or Qualifying
Widower:
2009 - $70,950
2010 - $72,450
2011 - $74,450
2012 - $78,750
2013 - $80,800

Married Filing
Separately:
2009 - $35,475
2010 - $36,225
2011 - $37,225
2012 - $39,375
2013 - $40,400

Phase-Out
Thresholds
The AMT exemption is
reduced by 25% of the
amount that alternative
minimum taxable
income exceeds the
threshold amount.

Single or Head of
Household
2012 - $112,500
2013 - $115,400

Married Filing
Jointly or Qualifying
Widowers
2012 - $150,000
2013 - $153,900

Married Filing
Separately
2012 - $75,000
2013 - $76,950


AMT Exemption for
Children Subject to
Kiddie Tax

For 2011
The lesser of $48,450
or the child's earned
income plus $6,800

For 2012
The lesser of $50,600
or the child's earned
income plus $6,950

For 2013
The lesser of $51,900
or the child's earned
income plus $7,150
Answers to all your Alternative Minimum Tax Questions
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