Alternative Minimum Tax (AMT) Estimator Formula

Understand the math behind the alternative minimum tax (amt) estimator. Each variable explained with a worked example.

Use the Alternative Minimum Tax (AMT) Estimator

Formulas Used

AMT (if any)

amt_owed = max(tentative_amt - regular_tax, 0)

Alternative Minimum Taxable Income

amti_display = amti

Regular Tax

regular_tax_display = regular_tax

Variables

VariableDescriptionDefault
taxable_incomeTaxable Income(USD)200000
salt_deductionSALT Deduction Claimed(USD)10000
other_preferencesOther AMT Preference Items(USD)0
amtiDerived value= taxable_income + salt_deduction + other_preferencescalculated
amt_exemptionDerived value= 85700calculated
amt_baseDerived value= max(amti - amt_exemption, 0)calculated
tentative_amtDerived value= amt_base <= 232600 ? amt_base * 0.26 : 60476 + (amt_base - 232600) * 0.28calculated
regular_taxDerived value= taxable_income <= 100525 ? 5426 + (taxable_income - 47150) * 0.22 : 17168.5 + (taxable_income - 100525) * 0.24calculated

How It Works

Alternative Minimum Tax

The AMT is a parallel tax system that limits certain deductions and tax breaks.

AMT = max(Tentative AMT - Regular Tax, 0)

2024 AMT Exemptions

| Filing Status | Exemption | |---|---| | Single | $85,700 | | Married Filing Jointly | $133,300 |

AMT rates: 26% on first $232,600, 28% above that.

Worked Example

$200,000 income, $10,000 SALT deduction.

taxable_income = 200000salt_deduction = 10000other_preferences = 0
  1. 01AMTI = $200,000 + $10,000 = $210,000
  2. 02AMT base = $210,000 - $85,700 = $124,300
  3. 03Tentative AMT = $124,300 x 26% = $32,318
  4. 04Regular tax on $200k = ~$36,428
  5. 05AMT = max($32,318 - $36,428, 0) = $0

Ready to run the numbers?

Open Alternative Minimum Tax (AMT) Estimator