2025 Alternative Minimum Tax (AMT) Exemption Updates

The Alternative Minimum Tax (AMT) aims to ensure higher-income taxpayers pay at least a minimum amount of tax, even after deductions and credits. For the 2025 tax year, the IRS has increased the AMT exemption amounts to reflect inflation:

• Unmarried Individuals:

   Exemption: $88,100

   Phase-out begins at: $626,350

  
  

• Married Filing Separately:

   Exemption: $68,650

  
  

• Married Filing Jointly:

   Exemption: $137,000

   Phase-out begins at: $1,252,700