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<<<CD interest = 5100
CA tax on interest = 5100*.093 = 474.30
US tax on interest = (5100-474.3)*.28=1295.20
after tax from CD= 5100-474.30-1295.2 = 3330.5>>>

<<Don't you deduct your California taxes on your Federal return? If so that would mean you have an additional 474.30*.28=132.80>>

Not if AMT applies. There's no deduction for taxes for AMT purposes. And I noted that the federal rate quoted, 28%, is the upper AMT rate.

Just because 28% is the upper AMT rate doesn't mean that the interest was taxed at 28%. It was taxed at your marginal income tax rate which could be higher than 28% (for example 33%). The 28% AMT rate can be looked at as a "recapture" (in the form of a higher tax rate) of the portion of your income that was taxed at the lower tax brackets of 0%, 10%, 15%, and 25%. Due to the complexity of our tax system, and the interactions of AMT, the best, and perhaps only, way to determine your true marginal rate on the additional interest is to calculate tax without it, and then with it, and take the difference to calculate your true marginal rate in that case.