What ALTERNATIVE MINIMUM TAX (AMT) means: A method of computing tax under which some of the income and deductions reported on the forms and schedules filed with your tax return are figured differently or disallowed. For example, interest on certain tax-exempt bonds is taxable for the alternative minimum tax, certain itemized deductions are not allowed when figuring the alternative minimum tax, and the alternative minimum tax has its own exemption amount, not based on the number of exmptions claimed on your tax return. A taxpayer pays the larger of the "regular tax" or the alternative minimum tax. The alternative minimum tax is computed on Form 6251.
- Definition Accelerated Depreciation:
- Dictionary depreciation that yield larger deductions in the earlier years of the life of an asset than does the straight-line method. The double (or 200 percent) declining balance method is an example of an alternative minimum tax (amt) definition.
- Definition Annuity:
- Dictionary to a person at specified intervals for a specific period of time or for life. The amouont may be fixed or variable. Payments represent a partial return of capital and a return on the capital alternative minimum tax (amt) explain.
- Definition Audit:
- Dictionary and verification of a taxpayer's return or other transactions with tax consequences. An office audit is an audit by the IRS that is conducted in the agent's office. A field audit is alternative minimum tax (amt) what is.
- Definition Advance Earned Income Credit:
- Dictionary Payment by an employer based on an employee's claim to entitlement to the earned income credit. Advance earned income credit payments are treated as additional taxes on the tax return alternative minimum tax (amt) meaning.
How works Alternative Minimum Tax (AMT meaning in Tax definitions A .
