So, what is the IRS alternative minimum tax (AMT)? The AMT was instituted in the late 1960s, hand in hand with the Federal Reserve, to ensure that high-income individuals pay at least a minimum amount of taxes. However, one of the challenges with the AMT is that an increasing number of middle-income taxpayers are finding themselves paying these taxes, including you and me. And it's about to get worse, a lot worse. Remember this guy? I'm going to show you how this lying sack of crap duped us all again. Here, you can see that although the alternative minimum tax was supposed to penalize the rich and close loopholes for them, as of 2013 and going forward into 2013 where it's going to get worse, you'll see that for a family filing a joint return, if the combined income was more than $80,800, or a single person or head of household who earned more than $51,900, or $40,400 for married persons filing separately, it's going to get worse, much worse. Let's look at this poor sap here. Let's call him John Q Public. He's 56-57 years old, works full-time as a regional sales manager, and has a fairly good income of $100,767 a year. He's head of household, supports himself, plus provides more than half the support for his daughter Johanna, who's a full-time student in college. In this scenario, John had $51,000 in itemized deductions. Those deductions included medical expenses, mileage allowance for the use of his car for business purposes, deduction allowance for the use of part of his home as a home office, and various other things like mortgage interest, which are typically allowed to deduct, and unreimbursed employer-employee business expenses. This brings John's taxable income down to $42,967. However, based on the tax table, John's tax liability should be $5,800...
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8582 alternative minimum tax Form: What You Should Know
It is an additional tax on the income of taxpayers and/or their families. The AMT is assessed on the income you earned during the year. You can calculate your AMT using both the standard deduction and AMT amount. The AMT reduces your basis in property that was previously depreciated by the amount of AMT you paid. The AMT also increases the amount of your tax. It is estimated in part by using a mathematical formula. If your taxable income is below certain thresholds, you pay a lesser AMT amount on your property. If your AMT is greater than zero, the difference between that amount and the amount you would pay if the AMT were zero applies as an excess AMT tax. You do not have to pay the excess AMT tax if it is the same amount as the AMT you are assessed. If you pay the excess, then you will actually owe more tax than if you were under the AMT. If you are using a refund method of taxation, the refund check will cover the AMT tax you paid. The refund check also increases your tax. “The IRS assesses the AMT on your earnings reported on Form 1040, W-2, Form 1040NR, or Form 1040A or 1040NR-EZ. “The AMT applies to taxpayers who are active business owners but file only passive activities. I have an investor on LinkedIn who had a very high AMT threshold amount. The threshold amount in 2024 is 315,400, but if you were in the 39.1% tax bracket between 2024 and 2024 you had to be in the AMT zone (i.e. 315,400 less 0) for a total of 405,400 in gains. If this investor used the standard deduction for 2024 and 2018, then the AMT would only apply on 415,000 of income. However, if all the investor's income for 2024 and 2024 is from passive investments, then the AMT only applies on the 315,400 of income for 2017. The AMT also applies to taxpayers who are active business owners and are required to file a Schedule 13D. They receive preferential treatment under current tax law. There is another form of AMT. This is called the 50% AMT. For more information see TurboT ax blog: Alternative Minimum Tax FAQs.
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