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

Example Sentences

Recent Examples on the Web

Some of its provisions most likely gave him an advantage at tax time — including the scaling back of the alternative minimum tax on high earners. —Jim Tankersley, BostonGlobe.com, 31 Dec. 2022

Some of its provisions most likely gave him an advantage at tax time — including the scaling back of the alternative minimum tax on high earners. —Jim Tankersley, BostonGlobe.com, 31 Dec. 2022

Some of its provisions most likely gave him an advantage at tax time — including the scaling back of the alternative minimum tax on high earners. —Jim Tankersley, BostonGlobe.com, 31 Dec. 2022

Some of its provisions most likely gave him an advantage at tax time — including the scaling back of the alternative minimum tax on high earners. —Jim Tankersley, BostonGlobe.com, 31 Dec. 2022

The 15% corporate book tax is a new alternative minimum tax that will hit more companies over time as it isn’t indexed for inflation. —The Editorial Board, WSJ, 8 Aug. 2022

Some of its provisions most likely gave him an advantage at tax time — including the scaling back of the alternative minimum tax on high earners. —Jim Tankersley, BostonGlobe.com, 31 Dec. 2022

Some of its provisions most likely gave him an advantage at tax time — including the scaling back of the alternative minimum tax on high earners. —Jim Tankersley, BostonGlobe.com, 31 Dec. 2022

Some of its provisions most likely gave him an advantage at tax time — including the scaling back of the alternative minimum tax on high earners. —Jim Tankersley, BostonGlobe.com, 31 Dec. 2022

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Word History

First Known Use

1958, in the meaning defined above

Legal Definition

alternative minimum tax

noun

: a federal tax that prevents a person or entity (as a corporation) with taxable income from avoiding tax liability and that imposes tax liability in the amount of the excess of the tentative minimum tax over regular tax liability see also tax preference item