Taxsmith, LLC – Alternative Minimum Tax

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Taxsmith, LLC – Alternative Minimum Tax

The Alternative Minimum Tax (AMT) is an income tax imposed by the U.S. Federal government on individuals, corporations, estates and trusts. AMT is imposed at a nearly flat rate on an adjusted amount of taxable income above a certain threshold (also known as exemption). The AMT may apply to you if your income is above a certain amount. Here are five facts the IRS wants you to know about the AMT:

1. You may have to pay the tax if your taxable income plus certain adjustments is more than the AMT exemption amount for your filing status.

2. The 2012 AMT exemption amounts for each filing status are:

  • Single and Head of Household = $50,600;
  • Married Filing Joint and Qualifying Widow(er) = $78,750; and
  • Married Filing Separate = $39,375.

3. AMT attempts to ensure that some individuals and corporations who claim certain exclusions, tax deductions and tax credits pay a minimum amount of tax.

4. We at Taxsmith are knowledgeable about using different rules than those you use to figure your regular income tax. Taxsmith will determine if you owe AMT, and if you do, it will figure the tax for you.

If you have any questions after reviewing the information please contact Taxsmith at 888.741.0272 or email us at info@taxsmith.com.