Reported 30 days ago
The Alternative Minimum Tax (AMT) is a tax system designed to ensure that high-income earners pay a minimum amount of tax, despite having significant deductions. It requires taxpayers to calculate their taxes under both the regular tax rules and the AMT rules, and pay the higher amount. The AMT disallows various deductions and modifies taxable income, primarily affecting those with high deductions or complex financial situations. Taxpayers need to evaluate their income, deductions, and potential triggers for AMT, and may benefit from consulting a financial advisor for effective tax management.
Source: YAHOO