What is the Alternative Minimum Tax (AMT) in 2025?
The AMT is an "alternative" tax that TurboTax calculates along with your regular federal tax. If the alternate method results in a higher tax than the regular method, you pay the difference on top of your regular tax.
How is AMT calculated?
Here's an outline of how it works:
We figure your AMT income (your AMTI) by adding certain deductions back into your AGI.
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.
AMT exemptions
$137,000 (Married Filing Jointly or Surviving Spouses)
$68,500 (Married Filing Separately)
$88,100 (all others)
Exemption phase-out thresholds:
$1,252,700 (Married Filing Jointly)
$626,350 (all other individuals)
