Alternative Minimum Tax

The alternative minimum tax, also known as the AMT tax, is an extra tax some people have to pay in addition to the regular income tax. The AMT now applies to some people who don't have very high income or who don't claim lots of special tax benefits. This tax provides alternative sets of rules for calculating your income tax. These rules help to determine the minimum amount of tax that you will be required to pay. If your regular tax falls below this minimum rate, you will have to make up the difference by paying alternative minimum tax.