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Alternative Minimum Tax Example. An alternative minimum tax (AMT) is a tax that ensures that taxpayers pay at least the minimum. AMT uses a separate set of rules to calculate taxable income after allowed deductions.

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However, applicability, manner of computation of adjusted income, exemption, reporting requirement etc are different compared to MAT. The Tax Policy Center has dubbed the Alternative Minimum Tax "the epitome of pointless complexity." That's because the AMT is a parallel income tax system. The alternative minimum tax (AMT) is a different way of calculating your tax obligation.

The Alternative Minimum Tax is a parallel tax system that operates separately from the regular tax laws.

The Alternative Minimum Tax (AMT) was designed to keep wealthy taxpayers from using loopholes to avoid paying taxes.

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Itemized deductions for state and local income tax, real. But because it was not automatically updated for inflation, more middle-class taxpayers were getting hit with the AMT each year. An alternative minimum tax (AMT) is a tax that ensures that taxpayers pay at least the minimum.

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