When tentative minimum tax exceeds the taxpayer's regular tax liability, the excess represents the taxpayer's:

Question

Quizplus · Accepted Answer

When the tentative minimum tax (AMT) exceeds the regular tax liability, the excess represents the taxpayer's alternative minimum tax liability. This is a separate tax calculation designed to ensure that high-income individuals and corporations do not use tax loopholes and deductions to avoid paying their fair share of taxes. The AMT is calculated separately from the regular tax liability, and the taxpayer must pay whichever is higher.

When Tentative Minimum Tax Exceeds the Taxpayer's Regular Tax Liability