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Old 05-22-2008, 12:16 PM
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Can a child aged under 18 be subject to AMT tax?

Dear Taxguru,

I wanted to know if a child under age 18 would be subject to the alternative minimum tax?

Thanks..



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Old 05-22-2008, 01:15 PM
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Can a child aged under 18 be subject to AMT tax? Reply to Thread

Well, a child under age 19 will not only be subject to the kiddie tax but can also be subject to the Alternative Minimum Tax.

Per IRS tax rules, "the child will actually compute a "Tentative Minimum Tax" in the same manner as an individual taxpayer."

However, the AMT exemption amount will de differently computed. PEr IRS code sec 59(j), the child's AMT exemption will be equal to the sum of the child's earned income plus $6,300 for the tax year 2007.

Thus, it is worth noting that the childs AMT tax calculation has no relationship to the Parents AMT minimum taxable income or AMT exemption amount.

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