US Alternative Minimum Tax: What would be the TMT on $500,000 of taxable income for "married filed jointly" ?

Here is what I tried:

  1. This is still below the exemption phase-out threshold, so we can take the full exemption of $109,400 and we are left with $390600.
  2. The first $191,500 of this are taxed with 26% -> $49,790
  3. The remaining $199,100 are taxed at 28% -> $55,748
  4. Total tax would be $105,538

Is this correct? What exactly is the AMTI? The $500,000 taxable income or the $390,600 that's left after the deduction? Is the tax bracket (26% vs 28%) determined by the 500k or 390k ?

I entered these number into https://www.olt.com/main/home/taxestimator.asp and it looked like the TMT came out to be significantly higher: $136,244. Is my calculation wrong?

I checked the IRS website. The only Form 6251 that I could find is from 2017 and it doesn't have the new rules in them.


Your calculations look right to me.

AMTI is income after AMT adjustments, before subtracting the AMT exemption. ($500,000 in your example.)

The 26% AMT bracket is the first $191,500 above the AMT exemption amount, just as you calculated it.

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Not the answer you're looking for? Browse other questions tagged or ask your own question.