In 1969 when the Alternative Minimum Tax was first implemented, it guaranteed that millionaires and high-income individuals who paid little to no income tax would have to pay a minimum amount of taxes. Over the years the number of individuals who fell into this category has grown, along with the total revenue. Different measures have been taken through the years, such as The Tax Reform Act of 1986 which eliminated the partial exclusion of capital gains, reducing overall revenue at the time, but helping individual taxpayers. With 2011 on the horizon, the potential number of additional AMT taxpayers will increase to 25 million, if the current legislation is not extended. The question is, should you fear the AMT?
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<a href=”http://blog.turbotax.intuit.com/wp-content/uploads/2010/10/amtcs3-10.png” mce_href=”http://blog.turbotax.intuit.com/wp-content/uploads/2010/10/amtcs3-10.png”><img src=”http://blog.turbotax.intuit.com/wp-content/uploads/2010/10/amtcs3-10.png” mce_src=”http://blog.turbotax.intuit.com/wp-content/uploads/2010/10/amtcs3-10.png” alt=”AMT” title=”AMT” width=”630″ height=”1934″ class=”alignnone size-full wp-image-8428″ /></a><br /><a href=”http://www.turbotax.com/” mce_href=”http://www.turbotax.com/”>Free Tax Filing, Efile Taxes, Income Tax Returns</a> – TurboTax.com
The infographic may lack some important things like, who are going to be affected of the new legislation? There must be more information to be given regarding this topic, so that people can understand it clearly.
So, Mark…I earn about $70K/year and will pay an additional $5K to the AMT this year. Because I have a larger family, I should have to pay more taxes? The AMT was not intended to be a tax for large families; rather, it was intended to allow the government to tax the rich out of loopholes.
I am currently in the military (18+ years) and am paying two mortgages because I can’t sell my house from my previous assignment due to the country’s financial mess. Now, I will probably have the privilege to pay additional taxes because of the Congress and Presidential inability to affectively address the AMT’s lack of inflation adjustment.
I don’t have extra money for charity and taxing me out of the standard deduction/exemptions is ridiculous. I’m happy that you can get around the tax, but some of us don’t have that luxury.
So what? I faced the ‘dreaded AMT’ the last couple years. In both cases, I ended up ducking it (upped my charitable and retirement contributions in one case, slipped under it thanks to a last minute patch in the second case). And if I hadn’t, so what? If you’re exposed to the AMT, you either have too many kids to fit in a van or you can afford the extra few thousand (or in my case can afford to kick an extra few thousand to charity to duck it).
As usual it’s an Infographic that doesn’t really tell you anything you want to know. It doesn’t really explain the qualifications for AMT so you can’t tell i you’re going to be affected. If they did that then most people would realize that they don’t have to worry about it. They don’t want that, they want everyone to be afraid of it so they call their senator.
If I’m reading the wikipedia page correctly, this tax has been in effect since 1970.
Why is this news exactly? Don’t people have enough to worry about without fake stuff?
Every dark night is followed by a bright sunny day. So, patience and attention is required and things will be fruitful in near future.There is nothing called a free lunch is this world. If anything needed to be resolved then initiated need a support to be sorted out.