Investor Glossary-amtInvestor Glossary-amtInvestor Glossary-amtInvestor Glossary-amtInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

AMT

The HTML to link to this page
 

The Alternative Minimum Tax, or AMT, is a tax intended to elicit a minimum contribution from individuals and corporations claiming exemptions that are disproportionate to their income or profits. Although the AMT was originally designed in 1970 to target a select a few hundred wealthy individuals that were paying little to no tax by claiming arcane exemptions, the AMT now affects millions of upper-income and middle-income individuals and families claiming relatively legitimate exemptions. As of 2010, the AMT remains a perennial subject of debate in Congress, which is politically motivated to issue frequent "patches" to decelerate the descent of the AMT deeper into the lower tax brackets. Calculating whether an individual owes the AMT - and how much - is complex. To help offset this complexity, the Internal Revenue Service (IRS) created the "Alternative Minimum Tax Assistant," an online wizard that guides taxpayers towards determining whether they might owe the AMT. If the AMT Assistant tests positive, the taxpayer is instructed to fill out Form 6251, which gives a definitive answer as to whether the AMT is owed and how much. Corporations possibly subject to the AMT are instructed to fill out Form 4626.



Rate this AMT definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: dividends payable, limit order, phantom income, deferred tax, wholly-owned subsidiary, cancelled check, LIBOR, 1031 exchange, average price per share, per diem, APR, covered put, irrevocable trust, inflation, labor relations, current ratio, required rate of return, ex-dividend date, stock split, retained earnings, risk management, minority interest, open position, liquidity ratio, command economy, class C shares, ex-dividend, 144a, debt service coverage, diluted share, option premium, balance sheet, margin rate, real GDP, Key Rate Duration, reverse mortgage, FTSE, deferred revenue, FICO score, annual return, stock market close, 401a, EBITDA, implied volatility, 1035 exchange, Zero Cost Collar, quality assurance, VIX, in escrow


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Investor Glossary | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2016 Investor Glossary - All rights reserved - Terms of Use