Dr. Friday explains the Alternative Minimum Tax (AMT), a parallel tax system designed to ensure wealthy taxpayers pay a fair share. While many may never encounter it, the AMT applies to individuals with high income from sources like interest or capital gains, imposing rates of up to 28%. Dr. Friday outlines how it works and why understanding it can help you stay ahead of your tax liabilities.
Transcript:
G’day, I’m Dr. Friday, president of Dr. Friday’s Tax and Financial Firm. To get more info, go to www.drfriday.com. This is a one-minute moment.
What is AMT tax? Come on, we’ve all heard the letters and we’re all sitting there going, what in the good book is this person talking about? And for many of you, it may never come. Alternative minimum tax is a tax code within the tax code. And it’s supposed to help level the playing field for the wealthy, so some of them may actually have a lot of money coming in from interest, or they may have a lot of money coming in from capital gains. And so this is the way that the tax code supposedly is helping. They can’t just keep those lower tax rates. They end up getting hit with a higher rate, which could be up to 26% in AMT. Actually, the highest is 28. So if you have questions, give us a call.
You can catch the Dr. Friday Call-In Show live every Saturday afternoon from 2 to 3 p.m. right here on 99.7 WTN.