Alternative minimum tax
Answer each of the following:
What is the purpose of the alternative minimum tax and who pays it?
How was the individual alternative minimum tax impacted by the December 2017 tax reform law?
Review available tax credits discussed in chapter 12 of the text. Compare the tax credits that you actually take with the tax credits you would like to take (included in the PDF file)
Explain why you made the particular selections.
For the tax credit(s) that you would like to take, explain why you are not able to take the tax credits(s).
For the tax credits that you actually take, explain the benefits that you receive from the tax credit(s).
If you have never prepared a tax return or looked at this information before, what do you find most significant about the information that you read about tax credits?
How, if at all, were the tax credits that you take or would like to take impacted by the December 2017 tax reform law?
Should be 250-500 words
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Alternative Minimum Tax
Q1
Alternative minimum tax refers to an income supplemental tax imposed to certain individuals, estates, trusts and corporations which have exemptions that allow them pay lower standard income tax. AMT operates under set of rules that enable payment of minimum tax by certain individuals.
(587 words)