AMT is a tax computed separately, and is paid only to the extent that it exceeds the regular federal tax liability. In order to partially offset the impact of AMT, the Taxpayer Relief Act of 1997 included several amendments of the AMT rules. State tax refund. Excess of accelerated depreciation over straight-line depreciation.
Lower thresholds apply to single, head of household, and married taxpayers who file separately.
In prior years, the AMTI exemption available to a child under age 14 was tied to the parent's unused AMTI exemption. If a taxpayer is subject to AMT in one year, a credit may be available in succeeding years to offset regular tax liability. The worksheet assumes the taxpayer does not have capital gains. For more complex situations, consult your tax advisor. Contact your tax advisor can also provide information, and should be consulted before any action is taken.