For more information, see Darla Decore, CPA, and Amy Leach, CPA, Tax Clinic, "Navigating the AMT
," in the April 2006 issue of The Tax Adviser.
They either don't owe any AMT
(in the case of a TMT below the regular tax liability) or owe AMT
in the amount of $22,763 (the difference between $77,492 and $54,729).
Because the AMT
does not provide a deduction for state and local taxes paid, as the regular tax code does, the Tax Foundation states.
Their AGI of $150,000 consists solely of income taxed the same way under regular and AMT
The Administration issued a veto threat against the House's modified AMT
legislation and stated that imposing a tax increase on one group of taxpayers is not the appropriate way to protect 21 million additional taxpayers from the reach of the AMT
Increase and index for inflation the AMT
brackets and exemption amounts, and eliminate phaseouts.
The greater the investment wealth, and the greater the advisory fees, the more likely the AMT
has become a tax penalty," complained Rosa DeLauro of Connecticut in May.
But you won't know for sure until you've calculated your taxes--twice (first using the regular tax formula and second using the AMT
was founded in 1998 at the initiative of researchers from the University of Amsterdam at the Academic Medical Center (AMC), one of the largest academic hospitals in the world.
4) Recent adjustments have provided some relief for those middle-class taxpayers seeking to take advantage of credits intended to benefit them, but soon millions will face the mind-numbing complexity of the AMT
rules and find, to their great surprise, that they are subject to an extra tax that erodes the benefit of tax rates, deductions, and credits that Congress has specifically granted.
The first AMT
was an "add-on" tax, paid in addition to an individual's regular income tax.