Let’s talk about a tax that often feels like a phantom limb of the IRS: the Alternative Minimum Tax (AMT). Many people assume it’s exclusively for billionaires, a complex hurdle only the ultra-wealthy need to clear. But here’s the uncomfortable truth: if your financial situation shifts, perhaps through a bonus, stock options, or even just significant deductions, this “minimum tax” can suddenly become your maximum headache, reaching surprisingly into middle-class pockets.
It’s a parallel universe of taxation, designed to ensure that even those with generous deductions and credits under the regular tax code still pay some amount of tax. And it’s sneaky because you often don’t realize you’re subject to it until you’re deep into tax season.