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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.

1 Answer 1

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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.

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