Tentative AMT
This is the tax on your AMT income, which is called the tentative AMT. We compare this figure to your regular tax, and if the tentative AMT is higher, the excess is your AMT.

The tentative AMT is figured at 26% of your AMT income, with two exceptions:

• If you have net capital gain income, your tax on your net capital gain is capped at the more favorable capital gain tax rate, usually 10% or 20%, rather than being subjected to the higher AMT rate.

• If your AMT income is over $175,000 ($87,500 if married filing separately), the AMT income over that amount is subject to a 28% AMT rate.