Alternative Minimum Tax

Definition

• This tax primarily affects high-income taxpayers who shelter some of their income from taxation through certain tax preference items or deductions. It is often referred to as AMT. If your income meets the limit, then you have to recalculate your tax amount that is due based on the separate alternative minimum tax rates and tables.

Notes
Form T691.

Synonyms
form T691

Acronyms
AMT

Alternate Spellings
T691

Related Terms and Acronyms

• Before-tax Income — Definition,
  • Earnings before income taxes are paid.
• Direct Tax — Definition,
  • A tax that is paid straight to the government.
• Tax Deduction — Definition,
  • An expense that governments allow you to subtract from your income before computing your income tax.
• Tax Deferral — Definition,
  • The postponement of taxes to a later year, usually by recognizing income or a gain at a later time. Remember, this only delays your tax liability; it doesn't eliminate it.
• Tax Exempt (TE) — Acronym, Very Important,
  • Income that is not subject to tax. Income exempt from federal tax may, however, be subject to provincial taxation.
• Tax-sheltered — Definition,
  • A savings or investment plan that offers significant tax savings.