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To the extent AMT exceeds regular Federal income, a future credit may be provided which can offset future regular tax to the extent AMT does not apply in a future year, if AMT is caused by timing adjustment items such as the exercise of ISOs. However, this credit is limited: see further details in the "AMT credit against regular tax" section.
Nothing gets taxpayers fired up quite like the alternative minimum tax, commonly called the AMT. This year, the good news that is fewer taxpayers will have to grapple with the AMT when filing 2018 ...
If the taxpayer claims the standard deduction for regular income tax, he or she cannot itemize deductions for the AMT. Thus, for a taxpayer who pays the AMT (i.e., their AMT is higher than regular tax), it may be better to itemize deductions, even if it produces a result that is less than the standard deduction.
Taxpayers who have paid AMT in prior years may claim a credit against regular tax for the prior AMT. The credit is limited so that regular tax is not reduced below current year AMT. AMT is imposed at a nearly flat rate (20% for corporations, 26% or 28% for individuals, estates, and trusts) on taxable income as modified for AMT.
The AMT allows an exemption for couples filing jointly of $137,000 (and $88,100 for single filers). Any households earning more than that are subject to the AMT, at two rates: 26% and 28% ...
An alternative minimum tax (AMT) is imposed at the federal level on a somewhat modified version of taxable income. [53] The tax applies to individuals and corporations. The tax base is adjusted gross income reduced by a fixed deduction that varies by taxpayer filing status. Itemized deductions of individuals are limited to home mortgage ...
For tax year 2018, a single taxpayer earning $100,000 with no special adjustments may incur about $40,000 of AMT preference items such as the bargain element of incentive stock option exercise and hold without paying AMT, due to the AMT exemption. [15] On February 1, 2019, the employee sells the remaining 500 shares at $300 per share.
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