Switch to the FORMS mode and review the AMT worksheet to see why you got hit with the AMT ...
How is AMT calculated?
The AMT calculation is complicated and beyond the scope of this article, but here’s an outline of how it works:
- We start by figuring your AMT income (your AMTI) by adding certain deductions back into to your AGI. (This is the part that’s too complicated to explain here.)
- Then we subtract your AMT exemption from your AMTI.
- The result is then multiplied by the AMT tax rate to come up with your alternative tax.
- If your alternative tax is less than your regular tax, you’re exempt from paying it (most taxpayers fall into this group).
- If your alternative tax is more than your regular tax, you have to pay the difference. We account for this in your final tax refund or taxes owed amount – you don’t pay it separately.
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