Alternative Minimum Tax Information

This website is an informational website only, sponsored by Triple Diamond Energy Corporation. The site is intended as a convenient source of tax information. This information is general in nature, is not complete, and may not apply to your specific situation. Before relying on this information, you should consult your own tax advisor regarding your tax needs. Triple Diamond Energy Corporation makes no warranties and is not responsible for your use of this information or for any errors or inaccuracies resulting from your use.

What is the Alternative Minimum Tax?

The Alternative Minimum Tax (AMT), is an extra tax that was designed to keep the very wealthy from avoiding their fair share of the tax bill. Because it has never been adjusted for inflation, the Alternative Minimum Tax now affects millions of taxpayers each year, including many middle-income taxpayers. It’s something you may need to consider when filing your taxes or making investment decisions.

The Alternative Minimum Tax provides an alternative way of calculating income tax to determine the minimum amount of tax that someone at a particular income level should be paying. If your regular tax bill falls below this minimum, you have to make up the difference by paying AMT. The cost can be substantial.

Will I have to pay Alternative Minimum Tax?

The rules around Alternative Minimum Tax are complicated and it’s difficult to predict when you’ll have to pay it. Reasons taxpayers are subject to the Alternative Minimum Tax include:
Large capital gains
High itemized deductions
Stock option exercises
Bunching deductions
With the recent reduction in income tax rates and an easing in restrictions on deductions, more taxpayers than ever before will be subject to Alternative Minimum Tax.