8409 N Military Trail #109, West Palm Beach, FL 33410

What is AMT and who has to pay it

What is AMT?

AMT; Alternative minimum tax is an extra tax that is levied on some people above their regular income tax. It’s a supplemental income tax imposed by the U.S government required in addition to baseline income tax for certain individuals, corporations, estates, and trusts that have exemptions or special circumstances allowing for lower payments of standard income tax. It has its own set of rates and rules for deductions, which are less generous than the non-AMT rules. The Alternative minimum tax was introduced 42 years ago.

Who has to pay it?

A taxpayer can have AMT liability if he has high gross income, this can occur either because of one big item on a tax return, or because of a combination of many small items. Any taxpayer can be liable to pay AMT. The average AMT bill is between $2,000 and $15,000.

Following are the common cases on which AMT is applied:

  • A couple filing a join return, with an income of $75,000 or more should definitely figure out the AMT calculations.
  • Taxpayers with children; tax dependents
  • People who take mortgage interest deductions, have capital gains, and have high state and local taxes.

If the amount of regular tax is higher than AMT figure, then you are not supposed to pay AMT. But if the regular tax is lower than the AMT figures then you are suppose to pay the difference.


My Tax Help MD is one of the reliable and professional tax relief providing companies that serve in all kinds of IRS tax issues. Our professional team is able to consult you about the IRS tax process, can provide you IRS tax debt relief, and can also guide you how to save money while paying your taxes.

Call us at 888-557-4020 or contact us online at http://www.mytaxhelpmd.com/contact-us/

By |2016-05-26T21:30:41+00:00May 26th, 2016|Blog|0 Comments

Leave A Comment