Enter the adjustable tax income and any allowable non-refundable tax credits to determine the alternative minimum tax (AMT).

AMT Formula

The following formula is used to calculate an alternative minimum tax.

AMT = A * (B-C) – D

  • Where AMT is the alternative minimum tax
  • A is a flat rate of 15%
  • B the adjustable tax income ($)
  • C is $40,000
  • D is non-refundable tax credits

AMT Definition

What is AMT?

AMT, short for adjusted minimum tax, is a method of calculating the minimum amount a person owes in taxes based on their income.

Example Problem

How to calculate amt?

First, determine the adjustable tax income. This is the income that a person makes that is subject to taxes. For this example, the person in question earns a total of $150,000.00 per year in taxable income.

Next, determine any non-refundable tax credits. The individual in this example has $5,000 tax credits to use.

Finally, calculate the AMT using the formula above:

AMT = A * (B-C) – D

AMT = .15* (150000-40000) – 5000

AMT = $11,500.00