 TITLE: What Is Alternative Minimum Tax? CONTENT: How Does the AMT Work?\n----------------------\nUnder the regular tax system, you may be able to lower your taxable income by claiming deductions and adjustments that decrease your adjustable gross income and make you eligible for additional tax credits. As a result, some high-income taxpayers can greatly decrease how much they owe in federal income taxes under the regular system.\nThe AMT system doesn't allow the same deductions and adjustments, and it may consider different forms of income as taxable. For example, the regular tax system might exclude income from certain types of municipal bonds, while the AMT considers this income taxable.\nYou also can't claim the standard IRS deduction with the AMT system. The standard deduction may lower your income by $12,000 or more in 2018 under the regular system depending on your age, filing status and other factors. END