Alternative minimum tax

The alternative minimum tax (AMT) reduces the possibility that a taxpayer will avoid paying a fair share of income taxes through the use of an excessive amount of tax breaks. The AMT does so by adding certain tax preference items back into a person’s adjusted gross income. If the resulting tax is higher than a person’s regular tax liability, the amount of tax paid is the regular tax liability plus the difference between this liability and the alternative minimum tax.

Related Courses

Accounting for Income Taxes 
Family Tax Planning