today's posted documents
- The U.S. Postal Service: Common Questions About Post Office Closures -- Click to view this document
- Budget Control Act: Potential Impact of Sequestration on Health Reform Spending -- Click to view this document
- The Federal Employees' Compensation Act (FECA): Workers' Compensation for Federal Employees -- Click to view this document
- The First Responder Network and Next- Generation Communications for Public Safety: Issues for Congress -- Click to view this document
- Social Security: The Trust Fund -- Click to view this document
- Heritage Areas: Background, Proposals, and Current Issues -- Click to view this document
For Power Users
FULL TEXT CRS DOCUMENTS
Find documents
The Alternative Minimum Tax for Individuals
Over time, the individual income tax has been used as a vehicle to promote various social and economic goals. This has been accomplished by according preferential tax treatment to certain items of income and expense. The net result, however, has been that by taking advantage of the preferences and incentives in the tax code, some individuals can substantially reduce their income taxes. Congress, in 1969, enacted the predecessor to the current individual alternative minimum tax (AMT) to make sure that everyone paid at least a minimum of taxes and still preserve the economic and social incentives in the tax code. The AMT is calculated in the following manner. First, an individual adds back various tax preference items to his taxable income under his regular income tax. This amount then becomes the AMT tax base. Next, the basic exemption is calculated and subtracted from the AMT tax base. A two-tiered tax rate structure of 26% and 28% is then assessed against the remaining AMT tax base to determine liability. The taxpayer then pays whichever is greater, the regular income tax or the AMT. Finally, the AMT tax credit is calculated as an item to be carried forward to offset regular income tax liabilities in future years.
This package includes following files:
| # | File Name | Document Date | Order ID: | Number of Pages | Price | |
|---|---|---|---|---|---|---|
| 1 |
RL30149.pdf
|
Jan 17, 2013 | RL30149 | 9 | $29.95 | Add to Cart |
Older Versions: