AMT. An IRS system created to ensure that high-income individuals, corporations, trusts, and estates pay at least some minimum amount of tax, regardless of deductions, credits or exemptions. It functions by adding certain tax-preference items back into adjusted gross income. While it was once only important for a limited number of high-income individuals who made extensive use of tax shelters and deductions, more and more people are being affected by it. The AMT was introduced in 1969, and was originally intended only to affect 155 U.S. households, but by 2010 it is projected that up to 20% of households may be affected by AMT. The AMT is often triggered when there are large numbers of personal exemptions on state and local taxes paid, large numbers of miscellaneous itemized deductions or medical expenses, or by Incentive Stock Option (ISO) plans. The AMT has become one of the most controversial tax mechanisms in existence.
Related information about Alternative Minimum Tax:
- Alternative Minimum Tax - Wikipedia, the free encyclopedia
The Alternative Minimum Tax (AMT) is an income tax imposed by the United States federal government on individuals, corporations, estates, and trusts. AMT is ...
- Alternative Minimum Tax (AMT) Assistant for Individuals
Aug 14, 2012 ... Every year taxpayers need to consider whether they will have to pay the Alternative Minimum Tax (AMT). The AMT Assistant is intended to ...
- Tax Topics - Topic 556 Alternative Minimum Tax
Oct 31, 2012 ... The AMT is a separately figured tax that eliminates or reduces many exclusions and deductions. In addition, certain credits (generally, ...
- Alternative Minimum Tax—Individuals - Internal Revenue Service
Form 6251. Department of the Treasury. Internal Revenue Service (99). Alternative Minimum Tax—Individuals. ▷ See separate instructions. ▷ Attach to Form ...
- Alternative Minimum Tax - Understanding the AMT
The alternative minimum tax, or AMT, is a second tax system parallel to the regular income tax. The alternative minimum tax adjusts or eliminates certain tax ...
- Alternative minimum tax could hit millions of new households ...
Nov 5, 2012 ... The best hope for a deal to avoid the "fiscal cliff" may lie with the alternative minimum tax, an obscure provision of the tax code that is about to ...
- The Alternative Minimum Tax (AMT) - SmartMoney.com
Feb 3, 2012 ... Most vulnerable to the AMT are taxpayers with several children, interest deductions from second mortgages, capital gains, high state and local ...
- Guide to the Alternative Minimum Tax (AMT)
Alternative minimum tax, or AMT, is an additional tax you pay on top of the regular income tax. Originally designed to prevent high-income individuals from using ...