Skip to main content
Message Font: Serif | Sans-Serif
No. of Recommendations: 4
Do Muni bonds trigger AMT tax?

Some of them do. Assuming you're thinking of muni bond funds, that will mean part of it will be subject to AMT.

How can I avoid paying so much AMT tax?

1) Make less money
2) Make more money and push yourself into a 35% tax bracket or such. You will pay more tax, but not via AMT.
3) Don't do things to get deductions because they don't do you any good anyway (this doesn't mean don't do things like give to charity, it just means don't do things if the only reason you're doing thing is to get the deduction - because, you won't)
4) Up your 401K contributions. This will reduce your overall tax, definitely, although what exactly will happen to the line that says 'AMT' may not be so easy to call.

Otherwise, just be happy that AMT standard for Alternate *Minimum* Tax. It means that you are paying the minimum amount of tax that Uncle Sam says you can for your income level.
Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.