October 24, 2007 |
Treasury Secretary Henry M. Paulson Jr. warned lawmakers Tuesday that delays in enacting a temporary fix to the alternative minimum tax could cause millions of taxpayers to experience delays in receiving their refunds. In a letter to Congress, Paulson also again warned that failure to pass an AMT fix would expose 21 million mostly unsuspecting taxpayers to the minimum tax -- and an average tax increase of $2,000.
December 10, 2007 |
Congress is trying to amend the tax code to keep millions of Americans from having to pay the alternative minimum tax, which the Internal Revenue Service and the taxpayer advocate say is one of the most complicated provisions for taxpayers. What is the alternative minimum tax? The AMT is a tax on income calculated by an alternative method than that used to calculate the standard income tax. Unlike the standard income tax calculation, which allows multiple deductions, the AMT calculation is designed to limit deductions.
March 5, 2000 |
Did you exercise incentive stock options last year, pay a lot of state income tax or claim deductible medical expenses for 1999? If so, it's time to worry. You're at risk of being subjected to the dreaded alternative minimum tax, a little-known form of federal taxation that is creeping up on an increasing number of Americans. The number of taxpayers subject to the AMT has more than quadrupled in the last decade.
February 22, 1998 |
Tax accountants may not be known for literary allusions, but when you talk to Mark Luscombe about the alternative minimum tax, he's likely to quote Lewis Carroll. When it comes to the AMT, the already curious U.S. tax code just gets "curiouser and curiouser," says Luscombe, principal tax analyst at CCH Inc., a Riverwoods, Ill.-based publisher of tax information.
December 20, 2007 |
Congress agreed Wednesday to spare more than 20 million taxpayers from the alternative minimum tax this year, bowing to Republican demands that the $50 billion in tax relief not be offset with any tax increases elsewhere. On the last day of legislative business this year, the House voted 352-64 to "patch" the so-called AMT, ensuring that millions of middle-class households -- some with incomes as low as $75,000 -- will be sheltered from the tax's bite.
February 15, 2012 |
President Obama is combining his proposal to raise taxes on the wealthy with a new effort to lower the levy on middle-class Americans. In his fiscal 2013 budget proposal, the president called for abolishing the alternative minimum tax. It was designed years ago to prevent wealthy people from dodging taxes, but nowadays is blindsiding a growing number of middle-income people. The president wants to replace the AMT with the so-called Buffett rule, which would require people making more than $1 million a year to pay at least 30% in taxes.