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 See More

These examples are programmatically compiled from various online sources to illustrate current usage of the word 'alternative minimum tax.' Any opinions expressed in the examples do not represent those of Merriam-Webster or its editors. Send us feedback about these examples.

Word History

First Known Use

1958, in the meaning defined above

Time Traveler
The first known use of alternative minimum tax was in 1958

Dictionary Entries Near 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 1 Apr. 2023.

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
Last Updated: - Updated example sentences
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