Wednesday, April 13, 2011

Effective alternative minimum tax bracket

2010 AMT bracket for the alternative minimum taxable income (AMT income)
assumming no qualified dividend or long term capital gain.








fromtobracket
072,4500
72,450150,0000.26
150,000227,9600.325
227,960439,8000.35
439,800above0.28


The strange thing is that the tax rate decreases for high AMT income. This is due to the fact that the "Exemption Amount" (Form 6251 line 29) is reduced when the AMT income is between 150,000 and 439,800.

References:

Form 6251

Form 6251 Instruction

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