alternative minimum tax
- A tax imposed by the federal government that aims to prevent individuals or corporations with taxable income from avoiding their tax obligations. The amount of tax due is determined as the difference between the calculated minimum tax and any regular tax liable
- Even though she had a number of deductions and credits, she was still required to pay the alternative minimum tax.
- The company had to calculate their alternative minimum tax to avoid any potential tax evasion charges.
- If your calculated minimum tax is greater than your regular tax, you might be subject to the alternative minimum tax.