What You Should Know about AMT

Have you ever wondered if the Alternative Minimum Tax applies to you? You may have to pay this tax if your income is above a certain amount. The AMT attempts to ensure that some individuals who claim certain tax benefits pay a minimum amount of tax.

What-You-Should-Know-about-AMT

Here are some things you should know about AMT:

 

1. You may have to pay the tax if your taxable income, plus certain adjustments, is more than the AMT exemption amount for your filing status. If your income is below this amount, you usually will not owe AMT.

 

2. The 2013 AMT exemption amounts for each filing status are:

• Single and Head of Household = $51,900

• Married Filing Joint and Qualifying Widow(er) = $80,800

• Married Filing Separate = $40,400

 

3. The rules for AMT are more complex than the rules for regular income tax. The best way to make it easy on yourself is to make an appointment with us to prepare and file your tax return. Call us at Padgett Business Services (845-834-4206) to find out more about AMT and find out how we can help you.

What You Should Know about AMT