Gone4Good
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
- Joined
- Sep 9, 2005
- Messages
- 5,381
thefed said:AMT is the Alternative Min. Tax, right? I've heard/read about it before, but I dont see the advantage/disadvantage of it. I'll have to read into it more.
Anyone have a concise 1 paragraph summary of the AMT>
Thanks
The AMT is a tax code that operates parallel to the "normal" code - that is to say if you meet certain criteria you have to calculate your tax liability under the normal rules AND under the AMT rules. Naturally you pay the higher of the two rates. (The mere fact that you have to go through the process of calculating your tax liability twice is more than enough to justify its elimination). Under the AMT rules many of the traditional deductions are eliminated so taxable income is higher. Under the AMT you also use a different tax rate (26% or 28% depending on income) rather than the normal progressive tax schedules.