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What Is Alternative Minimum Tax (amt)? |
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Answer» The Alternative Minimum Tax (AMT) is a way to RESTRICT wealthy taxpayers from tax evasion. AMT uses a separate set of rules to calculate TAXABLE income after allowed deductions. This is generally for higher income group as AMT SETS a limit on certain BENEFITS that reduces a taxpayer's regular tax amount. As a result, if the benefits on tax reduce total tax below AMT limit, taxpayer has to pay the higher AMT amount. The Alternative Minimum Tax (AMT) is a way to restrict wealthy taxpayers from tax evasion. AMT uses a separate set of rules to calculate taxable income after allowed deductions. This is generally for higher income group as AMT sets a limit on certain benefits that reduces a taxpayer's regular tax amount. As a result, if the benefits on tax reduce total tax below AMT limit, taxpayer has to pay the higher AMT amount. |
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