That statement is correct. The alternative minimum tax (AMT) in the United States applies to individuals only if it exceeds their regular income tax liability. Essentially, the AMT is a parallel tax system that calculates tax liability in an alternative way, disallowing certain deductions and credits that are allowed under the regular tax system. If the calculated AMT liability is higher than the regular tax liability, individuals are required to pay the higher AMT amount. However, if the regular tax liability is higher, they are not subject to AMT.