Let’s be real! The alternative minimum tax (AMT) is a “stealth tax.”

Why stealth?

The AMT is a tax you often don’t see coming until its too late. It’s a tax on your deductions. (You read that right—a tax on your deductions.)

Here’s how it works. You first do a regular tax return using regular tax law rules. Next you complete a one-page AMT form that taxes the deductions you claimed on your regular return. That’s stealthy.

Background

On May 5, 2004, Elizabeth A. Vitarbo ... Log in to view full article.