Amt Calculator

How to Use the AMT Tax Calculator

Step 1: Enter Your Ordinary Income

Start by locating the field labeled Ordinary Income ($). Enter your total ordinary income for the fiscal year. Ensure that the amount you input is greater than or equal to zero, as this field is required and must have a valid number.

Step 2: Enter Long-term Capital Gains

Next, find the field labeled Long-term Capital Gains ($). Input the total of your long-term capital gains. Like the previous field, this is also a required entry, and it should be a positive number.

Step 3: Input Your AMT Exemption Amount

In the field labeled AMT Exemption Amount ($), enter the applicable exemption amount for your filing status. This field requires a positive number as well.

Step 4: Select Your Filing Status

Locate and select your filing status from the dropdown menu labeled Filing Status. Options include:

• Single
• Married Filing Jointly
• Head of Household

This selection is mandatory as it affects the calculation of your taxes.

Step 5: Enter Itemized Deductions

In the field labeled Itemized Deductions ($), enter the total amount of your itemized deductions. Ensure that this amount is accurate and greater than or equal to zero since this is a required field.

Step 6: Input State and Local Taxes

Finally, fill the field labeled State and Local Taxes ($) with the total state and local taxes you have paid. As with other fields, this should be a positive number and is essential for the subsequent calculations.

Understanding the Results

Result 1: AMT Taxable Income

Once all inputs are entered, the calculator will compute your AMT Taxable Income using the formula: ordinary income + long-term capital gains – AMT exemption + state and local taxes.

Result 2: Alternative Minimum Tax

The Alternative Minimum Tax (AMT) is then calculated as 26% of your AMT taxable income.

Result 3: Regular Taxable Income

Your Regular Taxable Income is calculated by subtracting itemized deductions from the sum of ordinary income and long-term capital gains.

Result 4: Regular Tax

The Regular Tax amount is determined by calculating 24% of your regular taxable income.

Result 5: AMT Difference

The calculator will then compute the AMT Difference using the formula: maximum of (AMT – Regular Tax, 0). This represents the additional tax liability specific to AMT requirements.

Result 6: Total Tax Liability

Finally, the total tax liability is obtained by adding your regular tax and the AMT difference together, providing a complete view of your tax obligations.