Free 2018 Tax Planning2019-01-05T15:05:52+00:00

Free 2018 Tax Planning

Alternative Minimum Tax

The Alternative Minimum Tax is a minimum tax required for certain high income taxpayers. It gets triggered when taxpayers make more than the AMT exemption and use itemized deductions like state taxes. The AMT attempts to level the playing field, by making sure high income earners pay a minimum amount of tax.

In other words, it prevents high income earners from playing games with their deductions.