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AMT stands for Alternative Minimum Tax, which is a supplemental income tax required in addition to baseline income tax for certain individuals, corporations, estates, and trusts that have exemptions or special circumstances allowing for lower regular tax.

An amount set by the Internal Revenue Code that can be exempt from the Alternative Minimum Tax. This exemption phases out at higher income levels.

AMTI stands for Alternative Minimum Taxable Income. It is calculated by adjusting regular taxable income with certain preference items and tax adjustments.

The Alternative Minimum Tax has specific tax rates that are different from ordinary income tax rates. Currently, they are set at two flat rates: 26% and 28%.

Taxpayers who pay AMT in one year may claim a credit in subsequent years for a portion of the AMT paid. The credit can be used to reduce future regular tax liabilities, but not below the AMT level.

Certain income and deductions considered 'preference items' are added back into taxable income when calculating AMT. Examples include tax-exempt interest from private activity bonds and certain deductions.

The spread on exercise of an ISO can trigger AMT because it is considered a preference item, even if the stock is not sold and, therefore, does not generate cash to pay the tax.

The Qualified Business Income Deduction is available to non-corporate taxpayers, such as sole proprietors and shareholders in S corporations. The QBID is fully allowable for AMT purposes.

ATNOL is the Alternative Minimum Tax version of a net operating loss. It is more limited than regular tax NOLs, and it can only offset 90% of AMTI before exemptions.