How much tax does Amt pay?

The AMT has two tax rates: 26% and 28%. (Compare these to the seven federal income tax brackets, ranging from 10% to 37%.) Which rate you pay depends on how high your AMT taxable income is. 4. Subtract the AMT foreign tax credit, if you qualify for it. What’s left is your income tax under the AMT rules. 5.

What is an alternative minimum taxable income (Amt)?

These are calculations that add more income to or remove deductions from regular taxable income to arrive at alternative minimum taxable income (AMTI). In some ways, you can say that the AMT causes you to “lose” some tax breaks. Next, an AMT exemption is subtracted, and AMT tax rates are applied to get to tentative minimum tax.

How do you calculate AMT tax?

Thus, the AMT is owed only if the tentative minimum tax for the year is greater than the regular tax for that year. The tentative minimum tax is figured separately from the regular tax. In general, compute the tentative minimum tax by: Subtracting the AMT foreign tax credit. The law sets the AMT exemption amounts and AMT tax rates.