Hey dave, do I have to pay the AMT?

December, 23 2014 by Dave Du Val, EA
Woman looking at receipts with calculator and 1040 tax forms on desk

Hey Dave,

Is there a threshold as to when a married couple filing jointly would fall under the AMT?

Alejandro

 

Alejandro,

Good question, but there is not a threshold, per se. AMT, or Alternative Minimum Tax, is really an alternative method of calculating your tax liability, with certain adjustments being made to your deductions along with other AMT adjustments. The starting point is the same as the "regular" tax system, and that is the Adjusted Gross Income (AGI) on your return. If the AMT calculation is larger than the regular tax calculation, then you will owe AMT taxes.

All that said, the basic exemption amount for 2014 for folks filing Married Filing Jointly is $82,100. That is, if your AGI after the AMT adjustments (also called your "Alternative minimum taxable income") is $82,100 or less, then generally you will not owe AMT taxes. If the Alternative minimum taxable income is above this amount, there is the possibility that you may owe AMT.

You will find more information on the AMT, plus links to other information here.

Deductibly Yours,

Dave

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Dave Du Val, EA

Dave Du Val, EA
Chief Compliance Officer for TRI Holdco

 
Dave Du Val, EA, is Chief Compliance Officer for TRI Holdco. Inc., the parent company of TaxAudit, and Centenal Tax Group. A nationally recognized speaker and educator, Dave is well known for his high energy and dynamic presentation style. He is a frequent and popular guest speaker for the California Society of Tax Consultants, the California Society of Enrolled Agents and the National Association of Tax Professionals. Dave frequently contributes tax tips and information to news publications, including US News and World Report, USA Today, and CPA Practice Advisor. Dave is an Enrolled Agent who has prepared thousands of returns during his career and has trained and mentored hundreds of tax professionals. He is a member of the National Association of Tax Professionals, the National Association of Enrolled Agents and the California Society of Enrolled Agents. Dave also holds a Master of Arts in Education and has been educating people since 1972. 
 

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