How might we improve the AMT? Q.How might we improve the AMT? A.Congress could retarget the AMT to its original purpose or enact a major overhaul of the income tax system, eliminating the need for an alternative tax. Briefing Book page Read more about How might we improve the AMT?
What is the AMT? Q.What is the AMT? A.The individual alternative minimum tax (AMT) operates alongside the regular income tax. It requires many taxpayers to calculate their liability twice—once under the rules for the regular income tax and once under the AMT rules—and then pay the higher amount. Originally intended to prevent perceived abuses by a handful of the very rich, it now affects roughly 5 million filers. Briefing Book page Read more about What is the AMT?
Who pays the AMT? Q.Who pays the AMT? A.The individual alternative minimum tax (AMT) primarily affects well-off households, but not those with the very highest incomes. It is also more likely to hit taxpayers with large families, those who are married, and those who live in high-tax states. Briefing Book page Read more about Who pays the AMT?
