2014 vs 2013 AMT Exemption and Thresholds


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 StatusAMT Exemption AmountExcess Taxable Income (AMTI)AMT Phase-out Income Level
Joint Returns or Surviving Spouses$82,100$182,500$156,500
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) = 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

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