Let's see if we can shed some light on the Alternative Minimum Tax (AMT) which is also one of the most
confusing aspects of taxation in the U.S. but hopefully this video will clarify things a little bit. So
let's go back to the example from the first video of the person making a $100'000 and what I am going
to do is calculate the AMT, the Alternative Minimum Tax for that person and we will see what happens
from there. So Alternative Minimum Tax, for someone making $100'000 so what I've drawn right over here, this
applies if you make less than $300'000, the first $47'000 or so is exempt, when you're calculating the
alternative minimum tax. So for this person making a $100'000, we're just going to consider a balance
above $47,450 So a $100'000 minus $47,450 would be $52,550.
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