If you heard about the Alternative Minimum Tax, you probably wonder if it applies to you and what to expect if it applies. If your income exceeds a specific amount, you may fall under the Alternative Minimum Tax guidelines. The purpose of the AMT is to keep a minimum tax payment for those who choose certain credits. Some important fact about the AMT that you should know in order to better prepare this tax season: if your taxable income, including adjustments, is higher than the AMT exemption amount based on the filing status you use, you will be required to pay. Individuals with an annual income below the exemption amount usually do not have an AMT.

The Alternative Minimum Tax (AMT) exemption amount rises in 2018 to $95,750 ($191,500, for married couples filing jointly).

Alternative minimum tax guidelines are more detailed than regular income tax rules, so it is important to know that you are correctly filing. The use of tax software can make it easy and accurate to file your return. Electronic filing software can calculate your AMT automatically, if you have to pay. You must file Form 6251, Alternative Minimum Tax for individuals, if you owe the tax.