[Verse 1] Sarah earned two million last year, thought her taxes were complete Regular income tax was paid, but there's another sheet to meet The system has a parallel track, designed to catch the wealthy few Alternative Minimum Tax kicks in when preferences break through [Chorus] A-M-T, it's the safety net Add back preferences you can't forget SALT and depreciation, ISOs too Twenty-six or twenty-eight percent will do Calculate both ways, pay the higher amount A-M-T makes sure the wealthy count [Verse 2] Start with regular taxable income, then the adjustments flow Add back state and local taxes, watch the AMT income grow Depreciation differences, incentive stock options gain Private activity muni bonds, they all increase the pain [Chorus] A-M-T, it's the safety net Add back preferences you can't forget SALT and depreciation, ISOs too Twenty-six or twenty-eight percent will do Calculate both ways, pay the higher amount A-M-T makes sure the wealthy count [Verse 3] Exemption starts at one-eighteen for joint filers today But phases out at one point-oh-four, then slowly fades away Single filers get seventy-five, phaseout at five-twenty-eight The rates are twenty-six percent, then twenty-eight for higher weight [Bridge] Plan ahead with timing strategies Exercise those options carefully Spread the income, watch the phase-out AMT credit helps you later out [Verse 4] When regular tax exceeds AMT in future years ahead That credit from the past will help reduce what must be fed But only to the regular amount, not below that line Strategic planning pays off well when stars and timing align [Chorus] A-M-T, it's the safety net Add back preferences you can't forget SALT and depreciation, ISOs too Twenty-six or twenty-eight percent will do Calculate both ways, pay the higher amount A-M-T makes sure the wealthy count [Outro] Two systems running parallel The higher tax will always tell A-M-T, the parallel way Making sure the wealthy pay
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