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AMT Exemption

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AMT Exemption
The amount of a person or company's income or profit that is not subject to the alternative minimum tax. The AMT exemption gradually decreases as one's income or profit increases.


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For 2010, the AMT exemption amounts are $47,450 for unmarried individuals and $72,450 for married individuals filing jointly For 2011, the amounts are $48,450 and $74,450, respectively.
They range from changes in the Self-Employment Tax rate and computation of employee FICA to the extension of provisions such as the AMT exemption, Sales Tax Deduction, and the Child Tax Credit.
So over the decades, the AMT has morphed from a class tax into a mass tax, prompting Congress to approve temporary patches each year to lift the AMT exemption level and spare millions of middle-class taxpayers from becoming unintended victims of the stealth tax tax credit, worth up to $2,500 to offset the high cost of college, was scheduled to expire at the end of 2010.
 
 
 
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