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AMTI, Alternative Minimum Tax Calculation of Income  Form

AMTI, Alternative Minimum Tax Calculation of Income Form

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Voiceover: Let's say we have 2 people in identical jobs. Person A and Person B. This past year, they both got paid in their identical jobs, they got paid $350,000 in salary. Now let's assume that Person A has no deductions. They just calculate their taxes, and for the sake of simplicity, I'm just going to make up a number. I'm not going to go through all of it, especially because the tax code changes every year. Let's just say their regular taxes are $150,000. 150,000 in regular taxes. Regular taxes, when you just file taxes, not the straightforward, but just the regular way. Let's say Person B, on the other hand, even though they have the exact same job, they donate a bunch to charity; they have all of these deductions; they have all of these things that they can write off from their income, and so Person B's taxable income, let's say that it goes down, with all of these deductions, the taxable income goes down to $200,000. On that taxable income of $200,000, Person B has to pay $70,0

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