Alternative minimum tax (AMT)

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From TaxVox

How the New Tax Act Affects the Alternative Minimum Tax

Research report

The Individual Alternative Minimum Tax: Historical Data and Projections, Updated October 2009

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The Alternative Minimum Tax

Scorecard of all of the 2016 presidential tax proposals

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From the Briefing Book

Who pays the AMT?

by tpcwebsite

Q.

Who pays the AMT?

A.

Before the 2017 Tax Cuts and Jobs Act (TCJA), the individual alternative minimum tax (AMT) primarily affected well-off households, but not those with the very highest incomes. It was also more likely to hit taxpayers with large families, those who were married, and those who lived in high-tax states. The TCJA shields almost all upper-middle and high-income taxpayers from the reach of the AMT. The AMT is now most likely to hit those at the top of the income scale who are engaged in certain tax sheltering activities.

How did the TCJA change the AMT?

by tpcwebsite

Q.

How did the TCJA change the AMT?

A.

The 2017 Tax Cuts and Jobs Act (TCJA) included provisions that significantly reduced the impact of the alternative minimum tax (AMT). The TCJA enacted a higher AMT exemption, raised the income level at which the exemption begins to phase out, and repealed or scaled back some of the largest AMT preference items. As a result, TPC projects that the number of AMT taxpayers fell from more than 5 million in 2017 to just 200,000 in 2018.

What is the AMT?

by tpcwebsite

Q.

What is the AMT?

A.

The individual alternative minimum tax (AMT) operates alongside the regular income tax. It requires some 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, the AMT affected roughly 5.1 million filers in 2017. The Tax Cuts and Jobs Act dramatically reduced the reach of the AMT, albeit temporarily, so that the tax will hit only 200,000 filers in 2019.

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