[Anonymous]

All right, I know that under normal IRS rules you start with your gross income and subtract deductions (like state taxes), and exemptions (like child credits), and eventually, you arrive at your taxable income. And AMT is another way to determine tax liability and under this method a lot of deductions and exemptions are disallowed.

My question is, why are there 2 different ways to determine your tax liability, and what do you do if the tax liability if those 2 methods result in different amounts?

[IwannaBaCPA]

AMT is designed to prevent tax payers from reaping too much benefit by normal tax rules. AMT is the Alternative Minimum Tax which is basically a calculation of the minimum tax liability an individual must incur. When calculating, you will generally come up with different amounts – that is kind of the point. If the AMT liability is above the regular tax then the difference is the additional tax liability owed. If it is lower, then the regular tax amount calculated is what is owed.

BEC: 79 - April 2011
FAR: 78 - May 2011
AUD: 81 - May 2012
REG: 79 - October 2012
Ethics: Passed - March 2013
I am finally DONE!

[Jennifer241]

It was designed to keep high income earners from taking to many deductions in order to pay less tax than what the IRS feels they should.

AUD - Jan 9,13 Pass
REG - Aug 30,13 Pass
BEC - Oct 26,13 Pass
FAR - Dec 4,13 Pass

Licensed CPA in the state of Oregon

[Anonymous]

Thanks guys, that helped a lot. I'm just going through the Ninja notes/audio right now and plan to go through that as many times as possible, and practice MCQs like no tomorrow.

@IwannaBaCPA

By the way, I noticed that you passed FAR 1 month after you passed BEC. How did you pull that off (what materials/study methods did you implement)?

[IwannaBaCPA]

I think it was around 5 weeks and I honestly don't know how I pulled it off! I was working and taking two online classes as well. I think I must have had some luck on my side.

I did learn some things – I focused too much on the lectures and trying to memorize all of Beckers mnemonics rather than practicing the heck out of the MCQ. I would def suggest doing lots and lots of those! I did write about my experience in those 5 weeks on my blog…probably more accurate info there than I can give now – 2 years removed from it all!

Good luck!!

BEC: 79 - April 2011
FAR: 78 - May 2011
AUD: 81 - May 2012
REG: 79 - October 2012
Ethics: Passed - March 2013
I am finally DONE!

[Author]

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