Also found in: Dictionary, Medical, Acronyms, Encyclopedia, Wikipedia.

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.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.


In Denmark and Germany, a political subdivision equivalent to a county.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved


Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.

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.

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.

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.
Copyright © 2008 H&R Block. All Rights Reserved. Reproduced with permission from H&R Block Glossary
References in periodicals archive ?
The liberal confusion about the AMT is epitomized by The Washington Post, which has frequently editorialized against the tax.
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.
* Overnight parking at the Hyatt Regency is $62.00/day; AMT attendees get a 5% discount from the cost.
(3) See, e.g., Neil Barr et al., "Last Minute Retention of Corporate AMT in Senate Tax Bill Has Unintended Consequences," Davis Polk Tax Reform and Transition (Dec.
Swiss rifles are known for their quality barrels, and the AMT is no exception.
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).
For instance, in New Jersey, 81.6% of households earning between $200,000 and $500,000 fall under the AMT, while in Wyoming, only 26.3% of households in the same income range are subject to the AMT.
Whereas other carmakers previously bundled hydraulics and other more sophisticated automatic transmissions with costlier options in their top variants, the longtime market leader has scored by offering AMT as a mid-range option.
Originally, the AMT received little notice because it affected only a few taxpayers; however, during recent years, it has been slipping quietly into more tax returns.
American Airlines (NYSE:AMR) said on Tuesday that it is honouring a group of Aviation Maintenance Technicians (AMTs) for a lifetime achievement of serving five or more decades in the aviation industry.