amt alternative minimum tax Calculator

Calculate Alternative Minimum Tax



Formula

To calculate the alternative minimum tax (AMT):

\[ \text{AMT} = A \times (B - C) - D \]

Where:

What is AMT?

AMT, short for alternative minimum tax, is a method of calculating the minimum amount a person owes in taxes based on their income. It ensures that individuals with high incomes pay at least a minimum amount of tax.

Example Calculation 1

Let's assume the following values:

Using the formula:

\[ \text{AMT} = 0.15 \times (100,000 - 40,000) - 5,000 = 0.15 \times 60,000 - 5,000 = 9,000 - 5,000 = 4,000 \]

The Alternative Minimum Tax is $4,000.

Example Calculation 2

Let's assume the following values:

Using the formula:

\[ \text{AMT} = 0.15 \times (150,000 - 40,000) - 10,000 = 0.15 \times 110,000 - 10,000 = 16,500 - 10,000 = 6,500 \]

The Alternative Minimum Tax is $6,500.