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You might be paying Alternative Minimum Tax if your income exceeds certain thresholds or if you have certain deductions that the IRS does not allow under AMT rules. This tax is designed to ensure that individuals with high incomes contribute a minimum amount of tax, thereby preventing them from leveraging deductions to reduce their tax liability excessively. Consulting the 2012 M1MT, Alternative Minimum Tax - Minnesota Department Of will provide clarity and help determine your specific situation.
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