How will the new tax rate on dividends affect AMT?

December 8, 2003

Subject:  AMT Tax
From:  George
Date:  Sat, 18 Oct 2003

With the new 15% max tax on dividends, what is the effect on the AMT? Will the tax on dividends remain at 15% or will they be taxed at the AMT rate of 26/28%?



Date:  31 Oct 2003

Hello George,

The 15% maximum income tax rate also applies when computing the alternative minimum tax. Since the income is subject to tax at the same rate, but certain deductions, including state income taxes, are not deductible for AMT, more taxpayers will be subject to AMT thanks to this tax change.

Good luck!
Mike Gray

For answers to new questions, subscribe to our newsletter, Michael Gray, CPA's Tax & Business Insight by filling out the form below.

Home    Newsletter Archive    Introducing Michael Gray, CPA    Articles    Tax FAQ   Need Help?    Other Links

Michael Gray, CPA
2482 Wooding Ct.
San Jose, CA 95128
(408) 918-3162
FAX: (408) 938-0610
Hours: 8am - 5pm PDT Monday - Friday

Find us on Facebook
Follow me on Twitter
Connect on LinkedIn
Our Blog

Subscribe to Michael Gray, CPA's
Tax & Business Insight

We respect your email privacy