Alternative Minimum Tax
5 definitions

Alternative Minimum Tax
A tax intended to limit the extent to which higher-income people can reduce their tax liability (the amount they owe) through the use of preferences in the tax code. Taxpayers subject to the AMT are required to recalculate their tax liability on the basis of a more limited set of exemptions, deductions,and tax credits than would normally apply. The amount by which a taxpayer’s AMT calculation exceedshis or her regular tax calculation is that person’s AMT liability.
Alternative Minimum Tax

The AMT on modified taxable income plus tax preferences is paid if and to the extent it exceeds a taxpayer’s regular tax. The AMT is imposed to reduce the tax advantages derived from preferential treatment given to certain individuals and corporations that don’t pay tax on income derived from certain sources or enjoy special deductions.

Alternative Minimum Tax

Taxation based on an alternative method of calculating federal income tax under the Internal Revenue Code. Interest on certain private activity bonds is subject to the AMT.

Alternative Minimum Tax

A separate tax calculation from standard income tax calculations; taxpayer must pay the higher of its regular tax or AMT liability.

Alternative Minimum Tax

An IRS mechanism created to ensure that high-income individuals, corporations, trusts, and estates pay at least some minimum amount of tax, regardless of deductions, credits or exemptions.

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About this term

Alternative Minimum Tax has been defined 5 different ways in documents like Congressional Budget Office Glossary of Terms, Insurance Industry Glossary, MSRB Glossary of Municipal Securities Terms, and 2 more.

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