Submit a Question What is the AMT? AMT Adjustments AMT Exemption Minimum Tax Credit AMT NOL AMT Preferences Forms

AMT Rates:

26%, on Alternative Minimum Taxable Income (AMTI) up to

2015 - $185,400 ($92,700 for            married filing separately)

2014 - $182,500 ($91,250 for            married filing separately)

2013 - $179,500 ($89,750 for            married filing separately)

28% on AMTI over the above amounts

AMT Exemption Amounts

(Before Phase-Out)

Taxpayers Filing Single or Head of Household:

2015 - $53,600

2014 - $52,800

2013 - $51,900

2012 - $50,600 $52,800

Married Filing Jointly
or Qualifying Widower:

2015 - $83,400

2014 - $82,100

2013 - $80,800

2012 - $78,750

Married Filing Separately:

2015 - $41,700

2014 - $41,050

2013 - $40,400

2012 - $39,375



Phase-Out Thresholds

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

2015 - $119,200

2014 - $117,300

2013 - $115,400

Married Filing Jointly  or Qualifying Widowers

2015 - $158,900

2014 - $156,500

2013 - $153,900

Married Filing Separately

2015 - $79,450

2014 - $78,250

2013 - $76,950




How to Submit  A Question to the AMT Advisor


The AMT Exemption

Because the alternative minimum tax (AMT) was never intended to apply to
lower and middle income taxpayers who have small amounts of AMT adjustment or preference items, a feature was built into the system to prevent this from occurring. This feature is the AMT exemption.

The AMT exemption is an amount that a taxpayer is allowed to deduct from
alternative minimum taxable income before calculating the taxpayer’s AMT
liability. The exemption for a particular taxpayer depends on the taxpayer’s
filing status. To prevent upper-income taxpayers from benefiting from the AMT exemption, the exemption phases out after a taxpayer’s AMTI reaches a certain level, also based on the taxpayer’s filing status.

AMT Exemption Amounts - 2015

For 2015, the AMT exemption amounts for taxpayers not subject to the
exemption phase-out are:





A child subject to the kiddie tax rules for regular tax purposes determines his or her AMT exemption under special rules in Code Sec. 59(j)(1). The AMT exemption for a child subject to the kiddie tax is the lesser of the AMT
exemption for a single taxpayer or the total of the child's earned income plus $5,000, indexed for inflation. For 2015, the amount indexed for inflation is $7,400.

Exemption Phase-Out and Phase-Out Thresholds - 2015

The AMT exemption amount is reduced one dollar for every four dollars of AMTI above the threshold amount for the taxpayer’s filing status.

Exemption phase-out thresholds: The phase-out thresholds are:





EXAMPLE: Tim and Heather, a couple filing jointly, have AMTI of $175,000 in 2015. Their AMT exemption is $79,375 which is the full exemption amount of $83,400 less .25 x ($175,000 - $158,900) or $4,025.

AMTI level of complete phase-out: Because the AMT exemption phase-out is controlled by the amount of the exemption for a filing status and the amount that AMTI exceeds the phase-out threshold for that filing status, there is a common AMTI level where the exemption for each filing status phases out completely for all taxpayers in the filing status. The exemption phases out completely at the following levels of AMTI in 2015:





Practical Effect of the Exemption Phase-out

Although taxpayers with AMTI above the phase-out threshold still calculate
their AMT liability using the same rate as taxpayers that are not subject to
exemption phase-out, the loss of the exemption raises the taxpayer’s effective AMT tax rate. This occurs because for each $1 of income in the phase-out range, the amount of AMTI actually subject to tax increases by $1.25. This results in an effective AMT rate of 35% (instead of 28%) for AMTI in the phase-out range.

Need more help with the AMT Exemption rules?

Submit a question to the AMT Advisor.

Filing Status

Amounts

Single or Head of Household

$53,600

Married Filing Jointly or Surviving Spouse

$83,400

Married Filing Separately

$41,700

Filing Status

AMTI

Single or Head of Household

$119,200

Married Filing Jointly or Qualifying Widower

$158,900

Married Filing Separately

$79,450

Filing Status

AMTI

Single or Head of Household

$333,600

Married Filing Jointly or Surviving Spouse

$492,500

Married Filing Separately

$246,250