Alternative Minimum Tax: What You Need to Know and Who It Affects
What is the AMT and Who Has to Pay It?
The Alternative Minimum Tax (AMT) is a parallel tax system designed to ensure high-income earners pay at least a minimum amount of tax, even if they claim lots of deductions or credits. It limits certain tax breaks and has its own set of rules for calculating income.
Who has to pay it?
Typically, higher-income individuals—especially those with large deductions from state taxes, dependents, or incentive stock options—may trigger the AMT. While fewer people pay it now due to recent reforms, it still applies if your income is above certain thresholds (around $81K for single filers and $126K for joint filers in 2025, after exemptions).
Always check with a tax advisor if you think you might be close—it’s easy to miss.
Видео Alternative Minimum Tax: What You Need to Know and Who It Affects канала Invest Confidently
The Alternative Minimum Tax (AMT) is a parallel tax system designed to ensure high-income earners pay at least a minimum amount of tax, even if they claim lots of deductions or credits. It limits certain tax breaks and has its own set of rules for calculating income.
Who has to pay it?
Typically, higher-income individuals—especially those with large deductions from state taxes, dependents, or incentive stock options—may trigger the AMT. While fewer people pay it now due to recent reforms, it still applies if your income is above certain thresholds (around $81K for single filers and $126K for joint filers in 2025, after exemptions).
Always check with a tax advisor if you think you might be close—it’s easy to miss.
Видео Alternative Minimum Tax: What You Need to Know and Who It Affects канала Invest Confidently
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29 мая 2025 г. 18:35:12
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