AMT overview | Taxes | Finance & Capital Markets | Khan Academy

Overview of what the Alternative Minimum Tax is and its purpose. Created by Sal Khan. Watch the next lesson: https://www.khanacademy.org/economics-finance-domain/core-finance/taxes-topic/taxes/v/alternative-minimum-tax?utm_source=YT&utm_medium=Desc&utm_campaign=financeandcapitalmarkets Missed the previous lesson? Watch here: https://www.khanacademy.org/economics-finance-domain/core-finance/taxes-topic/taxes/v/tax-deductions-introduction?utm_source=YT&utm_medium=Desc&utm_campaign=financeandcapitalmarkets Finance and capital markets on Khan Academy: Benjamin Franklin (and several other writers/philosophers) tells us that "In this world nothing can be said to be certain, except death and taxes." He's right. This tutorial focus on personal income tax. Very important to watch if you ever plan on earning money (some of which the government will take for itself). About Khan Academy: Khan Academy offers practice exercises, instructional videos, and a personalized learning dashboard that empower learners to study at their own pace in and outside of the classroom. We tackle math, science, computer programming, history, art history, economics, and more. Our math missions guide learners from kindergarten to calculus using state-of-the-art, adaptive technology that identifies strengths and learning gaps. We've also partnered with institutions like NASA, The Museum of Modern Art, The California Academy of Sciences, and MIT to offer specialized content. For free. For everyone. Forever. #YouCanLearnAnything Subscribe to Khan Academy’s Finance and Capital Markets channel: https://www.youtube.com/channel/UCQ1Rt02HirUvBK2D2-ZO_2g?sub_confirmation=1 Subscribe to Khan Academy: https://www.youtube.com/subscription_center?add_user=khanacademy

Comments

1. I don't understand the benefits person B has.
   If they donated 150k to charities then their taxable and actual income is 200k. And they're taxed 70k on that which means their net income is 130k.
   Whereas person A had an actual and taxable income of 350k and had to pay 150k in taxes, leaving him with a net income of 200k.
   
   Is it just because of the way you picked the numbers arbitrarily? Because I don't see an incentive to donate here, and I don't see how the IRS would want to tax person B more. He earned less.
2. Like sisasosisaso just said, that seriously undermines a high-income earner's incentive to donate to charities. What a bizzare concept! Sal, in your example, person B had already donated the equivalent to person A's taxes. The only difference is that person B got to CHOOSE where his/her money was spent! Another shining example of 'a government for the people, by the people' screwing the people!
3. That kind of defeat the meaning for NON-TAXABLE charity donation.
4. thank you very much for the info
5. really well done with these 3 to 4 minute videos.. you cover big topics and really good way.