Respuesta :
Answer:
Taxpayers with a large amount of tax preference items and itemized deductions may be subjected to the alternative minimum tax (AMT).
Explanation:
Alternative minimum tax is a form of tax that applies to individuals who have enjoyed large tax benefits on their high economic income. This tax serves as a redressing tool to make sure that individual pays a minimum tax.
Alternative minimum tax is the surplus of supposed minimum tax over the regular tax. When calculating the supposed minimum tax, the income of an individual, deduction and exemptions are considered and alternative minimum tax rate is applied.
After getting the supposed minimum tax, it`s compared with the regular tax. If it higher than the regular tax, then the individual is subjected to alternative minimum tax.
