Alternative Minimum Tax! What is it?

Most of my clients get hit with the dreaded Alternative Minimum Tax (AMT).  This is an additional tax that people have to pay on top of their regular income tax if the taxpayer meets certain rules.  
Here are the common things I see across my client base on who usually gets hit with AMT:

• Makes more than $180k a year.  
• Lives in a state with high state income tax rate like CA or NY.  

Of course there is more than just these two triggers for AMT but these are the most common I see.  
Below are videos I created to help explain it better.  I hope it helps!  

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​​Phuc Ly, EA
Managing Partner

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