Amt


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Alternative Minimum Tax (AMT)

A federal tax aimed at ensuring that wealthy individuals, estates, trusts, and corporations pay a minimal level income tax. For individuals, the AMT is calculated by adding adjusted gross income to tax preference items.

Amt

In Denmark and Germany, a political subdivision equivalent to a county.

AMT

Alternative minimum tax (AMT).

The alternative minimum tax (AMT) was designed to ensure that all taxpayers pay at least the minimum federal income tax for their income level, no matter how many deductions or credits they claim.

The AMT is actually an extra tax, calculated separately and added to the amount the taxpayer owes in regular income tax. Some items that are usually tax exempt become taxable and special tax rates apply. For example, income on certain tax-free bonds is taxable.

Increasing numbers of taxpayers trigger the AMT if they deduct high state and local taxes or mortgage interest expenses, exercise a large number of stock options, or have significant tax-exempt interest.

Alternative Minimum Tax (AMT)

A method of computing tax under which some of the income and deductions reported on the forms and schedules filed with your tax return are figured differently or disallowed. For example, interest on certain tax-exempt bonds is taxable for the alternative minimum tax, certain itemized deductions are not allowed when figuring the alternative minimum tax, and the alternative minimum tax has its own exemption amount, not based on the number of exmptions claimed on your tax return. A taxpayer pays the larger of the "regular tax" or the alternative minimum tax. The alternative minimum tax is computed on Form 6251.
References in periodicals archive ?
They either don't owe any AMT (in the case of a TMT below the regular tax liability) or owe AMT in the amount of $22,763 (the difference between $77,492 and $54,729).
Because the AMT does not provide a deduction for state and local taxes paid, as the regular tax code does, the Tax Foundation states.
Their AGI of $150,000 consists solely of income taxed the same way under regular and AMT rules (e.
The Administration issued a veto threat against the House's modified AMT legislation and stated that imposing a tax increase on one group of taxpayers is not the appropriate way to protect 21 million additional taxpayers from the reach of the AMT.
Increase and index for inflation the AMT brackets and exemption amounts, and eliminate phaseouts.
The greater the investment wealth, and the greater the advisory fees, the more likely the AMT will apply.
The AMT has become a tax penalty," complained Rosa DeLauro of Connecticut in May.
When the Gordons filled out both 2002 returns, their income under the AMT was $27,000 higher than their regular income tax after they added back state and local taxes and a $10,000 capital gain.
7) In addition, to provide further economic stimulus and investment, corporate taxpayers with accumulated AMT credits--amounts that represent a prepayment of a company's regular corporate tax liability--should be afforded the opportunity to recover those credits.
In the years since, the AMT has been modified several times, changing the preference items and the tax rates.
AMT permits a disallowance of 90 percent of the NOLs, leaving 10 percent of the NOLs as a tax liability.
That is, $40,000 in regular income taxes on real income I actually earned, and another $72,000 in AMT that is on income I never actually received, and income I may never actually receive given the stock price.