What is Alternative Minimum Tax (AMT)?

An AMT is another method to calculate income tax for individuals. AMT is a different way. To calculate your tax, if your income reaches a specific level, the IRS uses a parallel tax system. You have two ways of calculating your taxes if you are subject to the AMT. The taxpayer has to pay a higher fee when the AMT results in a larger tax bill. The AMT has several restrictions on the income and deductions that it employs…

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