John M. Hoffman & Associates CPAs

Frequently Asked Questions

Alternative Minimum Tax (AMT)

"What is the AMT?"

The AMT is generally more dreaded than it deserves to be. For many Americans that are paying the AMT it is simply a different way of calculating your tax. If the AMT is higher than the regular tax, you pay that higher amount. The reason that so many more people are becoming subject to the  AMT is that when our politicians reduced tax rates several years ago, that was regular taxes only. Accordingly, if taxpayers should pay regular tax or AMT, whichever is higher, lowering regular tax and leaving the AMT alone, leaves many taxpayers facing the AMT because their regular tax was dropped below the AMT.