The AMT exemption is a specific amount that taxpayers can subtract from their alternative minimum taxable income (AMTI) to determine their alternative minimum tax (AMT) liability. This exemption aims to reduce the number of taxpayers who are subject to the AMT, providing relief to lower and middle-income earners. It's an important feature of the AMT system, as it allows certain individuals to pay regular income tax rather than the AMT, thus ensuring a fairer tax burden.
congrats on reading the definition of AMT Exemption. now let's actually learn it.