Following enactment of the American Tax Relief Act (ATRA) in 2012, the AMT patch legislation that Congress had to pass every year to ensure more people were not snagged by the Alternative Minimum tax (AMT), is now no longer required. Instead the AMT exemption and associated thresholds based on filing status are now tied (or indexed) to inflation (CPI) and updated by the IRS every year. For 2014 the amounts are shown in the table below (you can find 2013 rates here)
| 2014 Filing Status | AMT Exemption Amount | Excess Taxable Income (AMTI) | AMT Phase-out Income Level |
|---|---|---|---|
| Joint Returns or Surviving Spouses | $82,100 | $182,500 | $156,500 |
| Singles | $52,800 | $182,500 | $117,300 |
| Married Individuals Filing Separate Returns | $41,050 | $91,250 | $78,250 |
| Estates and Trusts | $23,500 | $182,500 | $78,250 |
AMT Exemption Amount = Income below this amount is not subject to the higher 28% AMT rate.
Excess Taxable Income (AMTI) =Â Income above which the 28% AMT tax rate applies. Income below this is still subject to federal IRS marginal tax rates.
AMT Phase-out Income Level = Level above which part of your income starts becoming subject to AMT