Alternative Minimum Tax (AMT)

The Alternative Minimum Tax (AMT) is a remarkably complex provision in the tax code. It requires taxpayers to calculate their taxes twice and then pay the larger amount.  AMT was originally designed to ensure wealthy Americans pay a reasonable level of their income in taxes. However, Americans in the middle class including many small business owners are now subject to the tax because of the combined effects of inflation and the reductions in the regular income tax. The Joint Committee on Taxation estimates that in 2012 over 30 million taxpayers, about one-fifth of all taxpayers, will be subject to the tax. 

In 2010, NFIB supported the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010 (H.R. 4853), which included an AMT patch for 2010 and 2011.

• For 2010, the exemption amounts were increased to $47,450 for individuals and $72,450 for joint filers.  
   

• For 2011, the exemption amounts increase to $48,450 for individuals and $74,450 for joint filers.

NFIB will continue to fight for a more permanent solution for small business owners.

Click here to determine whether or not you are subject to the AMT with this quick-to-use AMT Assistant worksheet from the Internal Revenue Service.