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 demonstrates.

From this video, you'll understand:

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