The Alternative Minimum Tax attempts to ensure that anyone who benefits from certain tax advantages pays at least a minimum amount of tax. Congress created the AMT in 1969, targeting taxpayers who could claim so many deductions they owed little or no income tax.
Individuals with a higher income may be subject to the Alternative Minimum Tax. Under the tax law, certain tax benefits can significantly reduce a taxpayer’s regular tax amount. The AMT sets a limit on those benefits. If the tax benefits would reduce total tax below the AMT limit, the taxpayer must pay the higher Alternative… Read More »
IRS Successfully Processing Tax Forms Affected by AMT Legislation WASHINGTON — The Internal Revenue Service is now processing the five tax forms affected by legislation involving the Alternative Minimum Tax (AMT). On Monday, IRS systems began to accept and process returns that include the five affected forms. After several days of processing, the IRS has… Read More »