The AMT Advisor

How to submit a
question to the AMT
Advisor

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What is the AMT?

AMT Adjustments

AMT Preferences

AMT Forms

Minimum Tax Credit

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Alternative
Minimum Tax
Amounts

AMT Exemption
Amounts Before
Phase-Out:

Taxpayers Filing
Single or Head
of Household :
2008 - $46,200
2009 - $46,700
2010 - $47,450
2011 - $48,450
2012 - $50,600
2013 - $51,900

Married Filing Jointly
Qualifying Widower:
2008 - $69,950
2009 - $70,950
2010 - $72,450
2011 - $74,450
2012 - $78,750
2013 - $80,800

Married Filing
Separately:
2008 - $34,975
2009 - $35,475
2010 - $36,225
2011 - $37,225
2012 - $39,375
2013 - $40,400

AMT Exemption
Phase-Out
Thresholds:

The AMT exemption is
reduced by 25% of the
amount that alternative
minimum taxable

income exceeds the
threshold for the
taxpayer's filing status.

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

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

Married Filing
Separately
2012 - $75,000
2013 - $76,950
Answers to All Your Alternative Minimum Tax Questions

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 - 2013

For 2013, 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 2013, the amount indexed for inflation is
$7,150

Exemption Phase-Out and Phase-Out Thresholds - 2013

Exemption phase-out formula: The 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 2013. Their AMT exemption is $75,525 which is the full
    exemption amount of $80,800, less .25 x ($175,000 - $153,900) or
    $5,275.

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 2013:










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.

Have a question about the AMT Exemption rules?
Click here to find out how to submit a question to the AMT
Advisor.


Need general individual income tax information?
Go to
FTI Publishing's 2013 Individual Income Tax Guide.
Filing Status
Amounts
Single or Head of Household
$51,900
Married Filing Jointly or Qualifying Widower
$80,800
Married Filing Separately
$40,400
Filing Status
AMTI
Single or Head of Household
$314,900
Married Filing Jointly or Qualifying Widower
$465,000
Married Filing Separately
$232,500
Filing Status
AMTI
Single or Head of Household
$115,400
Married Filing Jointly or Qualifying Widower
$153,900
Married Filing Separately
$  76,950
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