Everything You Need To Know About Alternative Minimum Tax

If you’ve heard of the , you’re probably wondering if it applies to you, and what you should expect if it does. If your income is above a specific amount, you may fall under the guidelines of the . The point of the is to maintain a minimum level of tax payment for those who opt for certain credits. Some important fact about the that you should know in order to better prepare this tax season:

You will be required to pay if your taxable income, including adjustments, is higher than the AMT exemption amount, based on which filing status you use. Individuals with an annual income lower than the exemption amount, are typically not subject to the AMT.

In 2014, each filing status has a different exemption limitation as follows:

  • Married Filing Jointly: $82,100
  • Unmarried, Single Filing Taxpayers: $52,800
  • Married Taxpayers Filing Separately: $41,050

The guidelines for the Alternative Minimum Tax are more detailed than regular income tax rules, so it’s important to know you’re filing correctly. Using tax software can make filing your return easy and accurate. Electronic filing software can automatically calculate AMT for you if you need to pay. If you owe the tax, you have to file , Alternative Minimum Tax for Individuals.