Alternative minimum tax
A separate tax calculation that applies to some high income individuals. In that calculation, many of the deductions allowed in the regular tax calculation are reversed. A higher deduction is applied ($70,300 for single taxpayers and $109,400 for taxpayers who are married filing jointly for tax year 2018) to derive alternative minimum taxable income. Tax rates of 26% and 28% (for tax year 2018) are multiplied by alternative minimum taxable income to derive the alternative minimum tax. Taxpayers pay the higher of their regular and alternative minimum tax.
I am also a retired property-casualty A professional who assesses and manages the risks of financial investments, insurance policies and other potentially risky ventures. Source: www.investopedia.com/terms/a/actuary.asp More (someone who works with the math and statistics related to insurance). I spent a significant portion of my career building statistical models of all of the financial risks of an insurance company and interpreting their findings to help senior management make better financial decisions. I retired in my late 50’s, which one of my daughter’s friends thought clearly qualified me to write this blog. Read more about Susie Q