alternative minimum tax
noun
: a U.S. federal income tax that was originally imposed to prevent wealthy taxpayers from using tax shelters to avoid paying taxes, that excludes many deductions and exemptions allowed in computing regular tax liability, and that must be paid instead of the regular tax liability by individuals and businesses whose alternative minimum tax liability is greater than their regular tax liability
Examples of alternative minimum tax in a Sentence
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Before 2018, the SALT deduction was unlimited but curbed by the alternative minimum tax for some wealthier households.
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Kate Dore, Cfp®, Ea, CNBC, 3 July 2025
The Senate version has a more taxpayer-friendly alternative minimum tax.
—Nathan Goldman, Forbes.com, 1 July 2025
First, taxpayers with limited SALT deductions often couldn’t deduct that same SALT prior to the TCJA because of the stricter alternative minimum tax (AMT).
—Garrett Watson, New York Daily News, 4 June 2025
Garbarino said the group isn’t seeking a complete revocation of the cap, as was the case prior to Republicans’ 2017 tax law, due to the fact that the alternative minimum tax (AMT), which is a separate tax provision, kicks in at a level that makes an unlimited SALT deduction unnecessary.
—Tobias Burns, The Hill, 7 May 2025
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Kate Dore, Cfp®, Ea, CNBC, 3 July 2025
The Senate version has a more taxpayer-friendly alternative minimum tax.
—Nathan Goldman, Forbes.com, 1 July 2025
First, taxpayers with limited SALT deductions often couldn’t deduct that same SALT prior to the TCJA because of the stricter alternative minimum tax (AMT).
—Garrett Watson, New York Daily News, 4 June 2025
Garbarino said the group isn’t seeking a complete revocation of the cap, as was the case prior to Republicans’ 2017 tax law, due to the fact that the alternative minimum tax (AMT), which is a separate tax provision, kicks in at a level that makes an unlimited SALT deduction unnecessary.
—Tobias Burns, The Hill, 7 May 2025
See All Example Sentences for alternative minimum tax
Cite this Entry
“Alternative minimum tax.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/alternative%20minimum%20tax. Accessed 19 Jul. 2025.
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