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What is the Alternative Minimum Tax (AMT) in 2022?

SOLVED•by TurboTax•1969•Updated January 13, 2023

The AMT is an "alternative" tax which TurboTax calculates behind-the-scenes, 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.

The AMT calculation is complicated, but here's an outline of how it works:

  1. We start by figuring your AMT income (your AMTI) by adding certain deductions back into your AGI
  2. We subtract your AMT exemption from your AMTI
  3. 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.

$118,100 (Married Filing Jointly or Surviving Spouses)
$59,050 (Married Filing Separately)
$75,900 (all others)

Exemption phase-out thresholds:
$1,079,800 (Married Filing Jointly)
$539,900 (all others)

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