The tax calculation of the “ALTERNATIVE MINIMUM TAX” reminds me of the coin flip where you were told, “Heads I win, Tails you lose”. What this amounts to is that your tax liability is computed using two different methods and tax rates, and the taxpayer ends up paying the higher tax computed under either rate.

Various itemized deductions such as state income taxes, local real estate taxes, medical expenses, and miscellaneous expenses are not allowed in computing the Alternative Minimum Tax liability. Nor is the taxpayer allowed any personal exemptions.

Much of the services that Tyler Lynch PC offers to our clients involve tax planning simulations which compare the difference between “Regular Tax”, and “Alternative Minimum Tax”, and suggesting ways to minimize them both !