Alternative Minimum Tax?

Question

What tax program will tell me how much tax-free income I may earn before I qualify for the Alternative Minimum Tax?

Answer 1

It's a lot more complex than just a total tax-free income earned. Also takes into account deductions.

Answer 2

First, you thoroughly misunderstand what the AMT is. once you initiate incomes too plenty, in accordance to the gov't, they have an option minimal tax which does no longer help you write issues off. That AMT is desperate so low now that it catches tens of millions of tax payers, whilst it exchange into initially enacted to capture 1000's. the wealthy pay greater with AMT, no longer much less. might it ask your self you to be taught that the precise 5% of earnings earners pay fifty seven% of the federal earnings taxes? and you greater helpful have self assurance maximum of them are paying the AMT. the precise 25% of earnings earners paid eighty 5% of the federal earnings taxes? it is up from eighty% in 1986. So no longer in ordinary terms do the wealthy pay the main taxes, their "proportion" has greater advantageous! the backside 50%'s proportion went from 6.5% in 1986 to 3.3% in 2004. The unfavourable and center classification are paying much less in earnings taxes than ever earlier. See IRS documents link decrease than.