What is the Alternative Minimum Tax (AMT) in 2023?

Here's an outline of how it works:

1. We figure 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.

$126,500 (Married Filing Jointly or Surviving Spouses)
$63,250 (Married Filing Separately)
$81,300 (all others)

Exemption phase-out thresholds:
$1,156,300 (Married Filing Jointly)
$578,150 (all others)