Alternative Minimum Tax (AMT)

What is the Alternative Minimum Tax?

The Alternative Minimum Tax was first introduced as part of the Tax Reform Act of 1969. Its original purpose was to target a small number of high-income taxpayers who could claim so many deductions and credits that they ended up owing little or no income tax. The AMT was introduced to keep the tax system as fair as possible and to ensure that all Americans payed at least a minimum amount of tax. 

The problem with the AMT is that it has not been efficiently adjusted over the years. Now a growing number of middle-income taxpayers are discovering that they are subject to the Alternative Minimum Tax.

AMT Exemptions

You may be subject to the Alternative Minimum Tax if your adjusted taxable income is more than the following exemption amounts for 2009:

$47,200 for singles and heads of households,

$35,475 for married filing separately,

$70,950 for married filing jointly.

IF You Are Required to Pay the AMT...

Don't worry! Efile is a great option for everyone, especially those affected by the AMT. The eFile tax software will determine if you are subject to the AMT, and will select the appropriate forms for your tax return. Plus, eFile gets your refund to you faster, and also greatly reduces the chances of making an error on the AMT or other tax calculations.