Single
Married Filing Jointly
Married Filing Separately
Head of Household
Qualifying Widow(er)
Your estimated Alternative Minimum Tax (AMT) is: $0.00
Understanding the Alternative Minimum Tax (AMT)
The Alternative Minimum Tax (AMT) is a separate tax system designed to ensure that taxpayers with significant income and various tax benefits pay at least a minimum amount of tax. It works by recalculating your tax liability using a different set of rules for income and deductions, and then comparing this "tentative minimum tax" with your regular tax liability. You end up paying the higher of the two.
How to Calculate AMT:
1. Calculate Tentative Minimum Tax Base: Start with your regular taxable income. Then, add back certain tax preference items and phase out certain deductions that are allowed for regular tax purposes but are disallowed or limited for AMT. This sum gives you your Tentative Minimum Taxable Income (TMTI).
2. Determine Exemption Amount: The AMT system provides a standard exemption amount, which varies based on your filing status. For 2023, these are:
Single: $11,900
Married Filing Separately: $11,900
Married Filing Jointly/Qualifying Widow(er): $22,900
Head of Household: $11,900
These exemption amounts are subject to phase-out for higher incomes. This calculator uses the values you input for simplicity.
3. Calculate Tentative Minimum Tax: Subtract the applicable AMT exemption amount from your TMTI. This result is then multiplied by the AMT tax rates. For 2023, the rates are typically 26% on the first $106,400 of TMTI (after exemption) for single filers and married filing jointly, and 28% on amounts above that. For higher incomes, a 25% rate may apply to certain items. This calculator uses simplified rates of 26% and 28%.
4. Compare with Regular Tax: Your AMT liability is the Tentative Minimum Tax calculated in step 3. If this amount is higher than your regular income tax liability, you must pay the difference as AMT.
Example:
Let's say your Regular Taxable Income is $150,000. Your AMT adjustments and preferences (Tentative Minimum Tax Base) add $30,000. You are filing as Single, and your exemption amount is $11,900 (for simplicity, assuming no phase-out).
26% on the first $106,400: $106,400 * 0.26 = $27,664
28% on the remaining $61,700 ($168,100 – $106,400): $61,700 * 0.28 = $17,276
Total Tentative Minimum Tax = $27,664 + $17,276 = $44,940
If your regular tax liability was $35,000, you would owe $9,940 ($44,940 – $35,000) in AMT. If your regular tax was $50,000, you would owe $0 in AMT, as your regular tax is higher.
Disclaimer: This calculator provides an estimation for educational purposes. Tax laws are complex and subject to change. Consult with a qualified tax professional for personalized advice. The exemption amounts and tax rates used may not reflect the most current tax year or specific phase-out rules.
function calculateAMT() {
var regularTaxableIncome = parseFloat(document.getElementById("regularTaxableIncome").value);
var tentativeMinimumTaxBase = parseFloat(document.getElementById("tentativeMinimumTaxBase").value);
var exemptionAmount = parseFloat(document.getElementById("exemptionAmount").value); // For Single, MFS
var exemptionAmountMFJ = parseFloat(document.getElementById("exemptionAmountMFJ").value); // For MFJ, QW
var filingStatus = document.getElementById("filingStatus").value;
var resultDiv = document.getElementById("result");
var resultSpan = resultDiv.querySelector("span");
if (isNaN(regularTaxableIncome) || isNaN(tentativeMinimumTaxBase)) {
resultSpan.textContent = "Please enter valid numbers for income and adjustments.";
return;
}
var amtExemption = 0;
if (filingStatus === "single" || filingStatus === "mfs" || filingStatus === "hoh") {
amtExemption = exemptionAmount;
} else if (filingStatus === "mfj" || filingStatus === "qw") {
amtExemption = exemptionAmountMFJ;
}
var tentativeMinimumTaxableIncome = regularTaxableIncome + tentativeMinimumTaxBase;
// Calculate taxable amount after exemption
var taxableAmountAfterExemption = tentativeMinimumTaxableIncome – amtExemption;
// Ensure taxable amount is not negative
if (taxableAmountAfterExemption < 0) {
taxableAmountAfterExemption = 0;
}
var tentativeMinimumTax = 0;
// Simplified AMT rates (refer to IRS for exact current year rates and brackets)
// Example rates for 2023: 26% on first $106,400, 28% above for MFJ/Single.
// Phase-outs for exemptions are complex and not fully modeled here.
var rate1 = 0.26;
var rate2 = 0.28;
var bracket1 = 106400; // Example bracket threshold for 2023
if (taxableAmountAfterExemption <= bracket1) {
tentativeMinimumTax = taxableAmountAfterExemption * rate1;
} else {
tentativeMinimumTax = (bracket1 * rate1) + ((taxableAmountAfterExemption – bracket1) * rate2);
}
// If TMT is less than 0 due to large exemption, set to 0
if (tentativeMinimumTax < 0) {
tentativeMinimumTax = 0;
}
// In a real scenario, you would compare this to the taxpayer's REGULAR tax liability.
// This calculator only computes the TENTATIVE MINIMUM TAX based on inputs.
// The AMT owed is the HIGHER of Tentative Minimum Tax or Regular Tax.
resultSpan.textContent = "$" + tentativeMinimumTax.toFixed(2);
}