Common Items Subject to the Alternative Minimum Tax (AMT):
- Tax-exempt interest from Private Activity Bonds
- Gain on Small Business Stock qualifying for exclusion
- Intangible Drilling Costs
- Passive Income or Loss
- Investment Expenses
- Personal Exemptions
- Standard deduction
- Mining Exploration & Development Costs
- Income from exercising incentive stock options
- Accelerated Depreciation in excess of straight line
- Itemized deductions for taxes, miscellaneous and medical expenses
Calculation of the AMT:
Regular Taxable Income
(+) Positive AMT Adjustments
(-) Negative AMT Adjustments
(=) Taxable Income after AMT Adjustments
(+) Tax Preferences
(=) Alternative Minimum Taxable Income (AMTI)
(-) AMT Exemption
(=) Minimum Tax Base
(x) AMT Rate
(=) Tentative AMT
(-) Regular income tax on taxable income
AMT Tax Rates
26% Rate - applies to AMT taxable income of $182,500 or less (after the AMT exemption), $91,250 or less if married filing separately.
28% Rate - applies to AMTI exceeding the $182,500 or $91,250 threshold.
AMT Exemption Amounts
|Filing Status||Exemption Amount 2014||Phaseout*|
|Married, filing separately||$41,050||$ 78,250+|
*The exemptions are phased out by 25% of the excess of AMTI over the listed amount.
Preferences and Adjustments
TaxesShould you worry about the AMT? Even if you're subject to it, there are exemptions and strategies for reducing your tax bill.
TaxesGetting rid of the AMT would be great for upper-middle class taxpayers.
TaxesFrom grouping related expenses to factoring in the alternative minimum tax, here are some things you need to keep in mind when doing tax planning.
TaxesThat depends on the type of stock option you have. A rundown of the tax treatment for statutory and nonstatutory, or non-qualified, options.
TaxesOptions and restricted stock are a great perk--if you don't get caught in a tax trap. Here's what you need to know.
TaxesTo lower your tax bill, make sure that you're taking all the exemptions that apply to you.
TaxesHere's a look at tax strategies for itemized deductions, charitable gifts and other tax credits.
TaxesFind out how your accounts are taxed and which forms you need.
TaxesGetting organized well before the deadline will curb your frustration and your tax liability.
TaxesLearn about the 2015-2016 tax brackets, how to calculate your marginal tax rate, the five types of filing status and how to qualify for them.