AMT ?

[Rich]

My income comes from three income streams (two pensions and SS). RMD will be coming in about three years. Can that push me into AMT land? Are pensions counted as income for AMT purposes I guess is the real question?

Rich

 

[sanfanciscotreat]

That would depend on you total income, I would think.

 

[Alan]

That would depend on you total income, I would think.

.... and your itemized deductions, since AMT excludes many popular deductions.

Regular taxable income is adjusted for certain items computed differently for AMT, such as depreciation and medical expenses. No deduction is allowed for state taxes or miscellaneous itemized deductions in computing AMT income. Taxpayers with incomes above the exemption whose regular Federal income tax is below the amount of AMT must pay the higher AMT amount.

Alternative Minimum Tax - Wikipedia, the free encyclopedia

 

[Brett_Cameron]

My income comes from three income streams (two pensions and SS). RMD will be coming in about three years. Can that push me into AMT land? Are pensions counted as income for AMT purposes I guess is the real question?

Rich

Yes, pensions count for AMT purposes.

 

[audreyh1]

Usually one gets in trouble with AMT from deductions and long-term capital gains/qualified dividends because these lower your tax rate. Additional ordinary income is taxed at a higher rate, and once you get up into the higher tax brackets, the AMT calculation is usually less than the "regular" calculation. In other words, additional ordinary income doesn't necessarily trigger AMT.

But, if you have large deductions or a good chunk of your income comes from long-term capital gains and/or qualified dividends, you might find yourself paying AMT rates on your ordinary income.