Their total regular tax and total AMT would both drop if they were single.
FORBES: Marriage, Children, Tax Credits, And The Alternative Minimum Tax
In overly simplistic terms, calculating your AMT liability requires that the regular tax be computed.
You compute regular tax and AMT, and if the AMT is higher, you must pay it.
You compute your regular tax and your AMT and pay whichever is more.
You compute your regular tax and your AMT and pay whichever the less.
You compute regular tax and AMT and pay whichever is higher .
J. tax accountant, the AMT has snared more and more taxpayers, in part because it's not indexed for inflation as the regular tax is.
While lowering the regular tax rates, they allowed the alternative minimum tax to recapture much of those tax revenues from a lot of upper-middle-class people.
Including the new tax when you compare your regular tax liability against potential AMT would protect many high-income taxpayers from having to pay the alternative tax.
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And as long as his AMT liability exceeds his regular tax liability, Joe will continue to be subject to the AMT and its maximum tax rate of 28%.
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He is now the co-founder of Beyond415 (an IRS response solution vendor) and writes a regular Tax Update newsletter, which was recently picked back up in CPA Practice Advisor.
Finally, the AMTI is applied against its own set of rates, and your AMT is the amount that the taxes imposed under these alternative rates exceed your regular tax.
Veriha v Commissioner was a regular Tax Court decision.
FORBES: Some Tax Developments Unrelated To The Fiscal Cliff Drama
If the taxpayer wished to try to persuade the IRS that there were mitigating factors to reduce or eliminate the amnesty penalties, the taxpayer would have had to "exit" the program and make those arguments in the course of a regular tax audit.
There would be subsidies for those who have financial difficulty getting private coverage--we could pay for it by redirecting regular tax expenditures, gaining administrative savings through one-stop enrollment for clients, electronic transfers of medical records and improvements in the health care information technology spectrum, and ending unneeded hospital emergency room visits.
Finally, half the medicare tax is deductible against adjusted gross income in computing regular income tax, while none of the NIIT is deductible.
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The alternative minimum tax (AMT) can create large marriage penalties for high-income couples, reversing bonuses in the regular income tax.
FORBES: Marriage, Children, Tax Credits, And The Alternative Minimum Tax
Long-term capital gains are taxed at 15% and short term at your regular marginal tax rate.
It is computed separately from your regular income tax and you only pay the AMT if it is greater.
The US system, until the Bush cuts, taxed the dividend at the corporate level and then again at regular income tax rates for the recipient.
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If cashed out, proceeds beyond the total of premiums paid would be subject to regular income tax, though that's usually a small amount in such small policies.
Savino says he has clients who are on the cusp of AMT who maximize the state and local deduction just until the AMT equals the regular income tax.
FORBES: Should You Prepay Your State And Local Taxes By Dec. 31, 2012?
Furthermore, either regular income tax or alternative minimum tax may be payable at the time of exercise, even if the underlying stock is subsequently sold at a loss.
Last year's budget agreement tacked an additional six months onto the time an individual must hold a financial asset in order to have the lower capital gains rate applied instead of the regular income tax rate.
However, taxpayers should note that Code Sec. 1411 is to follow normal income tax rules (i.e. rules that a tax lawyer or accountant might refer to as tax rules under chapter one of the Internal Revenue Code), so for ease of calculation, what is exempted from the regular income tax, such as tax-exempted mutual bonds, are also excluded from the NII sum.
This could happen if the tax payments to Switzerland lower your regular U.S. tax bill so much that the AMT kicks in.
John Whiting of the Chartered Institute of Taxation (CIOT) said this was becoming a regular feature of the tax system.
Dirico v Commissioner, another Tax Court regular decision, was another convoluted 469 case involving the regulations about how to classify activities.
FORBES: Some Tax Developments Unrelated To The Fiscal Cliff Drama
First you figure your tax the regular way, and then under the AMT at a rate of up to 28% on a broad base of income that excludes many tax breaks.
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