Many high-income taxpayers must pay a higher alternative minimum tax rather than the tax they owe after taking allowable adjustments and deductions.

Question

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The Alternative Minimum Tax (AMT) is a separate tax calculation that ensures high-income taxpayers pay a minimum amount of tax, regardless of deductions and credits. If the amount calculated using the AMT is higher than the regular tax, the taxpayer must pay the higher amount.

Many High-Income Taxpayers Must Pay a Higher Alternative Minimum Tax