2007 Schedule MT, Wisconsin Alternative Minimum Tax (pdf fillable format) Schedule MT 2007-2025

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Steps to Calculate AMT Determine Adjusted Total Income (ATI): Adjusted total income is calculated by: Apply the AMT Rate: Multiply the adjusted total income by the AMT rate of 18.5% (plus applicable surcharge and cess). Compare Normal Tax and AMT: If the normal tax liability is higher, pay the normal tax.
Why Was the Alternative Minimum Tax (AMT) Created? The AMT was enacted in 1969 to keep wealthy taxpayers from using what was viewed as too many tax preferences. In 1969, U.S. Treasury Secretary Joseph Barr testified that in 1966, 155 high-income people paid zero income tax.
How does the AMT work? Start with taxable income. Calculate your taxable income as you would normally, or enter the amount from Form 1040, line 15. Make required adjustments. Subtract your AMT exemption. Multiply the result by your AMT tax rate.
How is the AMT calculated? The AMT is the excess of the tentative minimum tax over the regular tax. Thus, the AMT is owed only if the tentative minimum tax for the year is greater than the regular tax for that year. The tentative minimum tax is figured separately from the regular tax.
More In Forms and Instructions Use Form 6251 to figure the amount, if any, of your alternative minimum tax (AMT). The AMT applies to taxpayers who have certain types of income that receive favorable treatment, or who qualify for certain deductions, under the tax law.
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To figure out whether you owe any additional tax under the Alternative Minimum Tax system, you need to fill out Form 6251. If the tax calculated on Form 6251 is higher than that calculated on your regular tax return, you have to pay the difference as AMT in addition to the regularly calculated income tax.
How is MAT calculated? MAT is calculated as 15% of the book profit of the tax assesse. Under existing rules, book profit is calculated as per Section 115JB of the Income Tax Act, 1961.

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