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Calculating the Alternative Minimum Tax: CNBC Explains

The Alternative Minimum Tax, also known as the AMT, is a portion of the US. tax code that affects high-earning individuals who lower their tax payments through deductions. However, the AMT is a tricky part of American taxation. Want to know how it's calculated? Salman Khan of the Khan Academy demonstrates.

From this video, you'll understand:

  • How the AMT is calculated
  • The relationship between the AMT and regular income tax



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