Get What Is Alternative Minimum Tax (AMT) - Video

Then, subtract your AMT exemption (if eligible), which for the 2023 tax year is $81,300 for individuals, $63,250 for married couples filing separately, and $126,500 for married couples filing jointly or qualifying widow(er).

The AMT exemption for 2024 is $85,700 and begins phasing out at $609,350 ($133,300 for married couples filing jointly, phasing out beginning at $1,218,700). The AMT exemption for 2023 was $81,300, phasing out at $578,150 ($126,500 for married couples filing jointly, phasing out beginning at $1,156,300). IRS increases standard deductions and exclusions for 2024, including ... ey.com https://taxnews.ey.com › news › 2023-1883-irs-increases... ey.com https://taxnews.ey.com › news › 2023-1883-irs-increases...

The Alternative Minimum Tax (AMT) is a separate tax system that requires some taxpayers to calculate their tax liability twice—first, under ordinary income tax rules, then under the AMT—and pay whichever amount is highest.

How to Reduce the AMT. A good strategy for minimizing your AMT liability is to keep your adjusted gross income (AGI) as low as possible. Some options: Participate in a 401(k), 403(b), SARSEP​, 457(b) plan, or SIMPLE IRA by making the maximum allowable salary deferral contributions.

Claim the AMT credit while filing your current year tax return by filling out Form 8801 and filing it along with your tax return. Carry forward and track the remaining credit you were not allowed to use in the current year.

The 2023 standard deduction is $13,850 for single filers and those married filing separately, $27,700 for those married filing jointly, and $20,800 for heads of household. Standard Deduction 2023-2024: Amounts, When to Take - NerdWallet nerdwallet.com https://.nerdwallet.com › article › taxes › standard-d... nerdwallet.com https://.nerdwallet.com › article › taxes › standard-d...

How Is the AMT Calculated? The AMT is the excess of the tentative minimum tax over the regular tax. Thus, the AMT is owed only if the tentative minimum tax for the year is greater than the regular tax for that year. The tentative minimum tax is figured separately from the regular tax. Topic No. 556, Alternative Minimum Tax | Internal Revenue Service irs.gov https://.irs.gov › taxtopics irs.gov https://.irs.gov › taxtopics

AMT exemption amounts for 2022-2023 Filing status2022 AMT exemptionSingle or head of householdUp to $75,900Married, filing separatelyUp to $59,050Married, filing jointlyUp to $118,100 Mar 21, 2023 Alternative Minimum Tax 2022-2023: What It Is And Who Pays Bankrate https://.bankrate.com › taxes › alternative-minim... Bankrate https://.bankrate.com › taxes › alternative-minim...