Explore commonly used personal finance terms.
Alternative Minimum Taxable Income (AMTI) is an individual’s or corporation’s adjusted income, calculated for the purpose of determining the Alternative Minimum Tax (AMT). AMTI is derived by adding back certain deductions, exemptions, and exclusions to regular taxable income. The AMT ensures that taxpayers with high deductions pay a minimum level of tax, preventing excessive tax benefits. Understanding AMTI is crucial for tax planning, especially for those subject to AMT rules, as it affects the final tax liability calculation.
