What does Alternative Minimum Tax mean? Read on to discover the definition & meaning of the term Alternative Minimum Tax - to help you better understand the language used in insurance policies.
Alternative Minimum Tax
The alternative minimum tax is an alternative to standard tax rates. It only applies if a person's tax deductions are so numerous that it exempts them from paying almost any taxes. In such situations, the taxpayer pays the alternative minimum tax instead of what they would have owed otherwise.
We hope the you have a better understanding of the meaning of Alternative Minimum Tax.