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Common Questions About AMT (Alternative Minimum Tax)

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  • J.K.Logic
    2015-04-13 04:12:14 PM
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    Found this very good resource on the AMT taxing system. As it can be complicated to fully understand when and how the alternative minimum tax applies to any given taxpayer, I thought I would share this. This subject really confuses me, but TurboTax lays out everything you need to know about AMT, in full detail:

    Alternative Minimum Tax: Common Questions

    In short though, the AMT system was put in place by Congress decades ago to ensure that the rich couldn't use too many clever deductions, and end up not having to pay any taxes whatsoever. So they implemented the AMT. And basically (supposedly and originally meant for just closing a tax loophole on the 'rich') or at least richer people among us, if you make above a certain threshold, you have a limit to how much tax you can avoid paying through qualifying deductions. A cap, a floor of a minimum due; an either/or type situation, if that makes sense.

    Anyone here have any experience dealing with the AMT? Is it as big a headache as it sounds? What has been your experience with having to use AMT?
  • J.K.Logic
    2015-04-13 04:27:20 PM
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    There's also this video, which breaks it down very simply. I had no idea about 4 million taxpayers were effected by this alternate tax....

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