Alternative Minimum Tax – Medical and Dental Expenses
The itemized deduction for medical and dental expenses is an item that affects a significant number of individuals who are stuck in the Alternative Minimum Tax. Depending on the type of health insurance an individual has (high deductible plan with a Health Savings Account versus a high amount of (read on...)
Beware of the Alternative Minimum Tax!
AMT (Alternative Minimum Tax) is an extra tax that is paid by very high income that may use special tax benefits to pay little to no taxes. This was created back in 1970’s to get the highest tax brackets to pay more taxes due to certain deduction abuse. The problem is AMT does not really (read on...)
Alternative Minimum Tax Planning Ideas – Standard Deduction
A taxpayer has a choice of itemizing deductions or taking the Standard Deduction in computing his Regular Tax liability. The Standard Deduction is a fixed dollar amount that varies depends on filing status. In tax year 2009 it is $5,700 for Single and $11,400 for Married Filing Jointly. State (read on...)
Limitation on Itemized Deductions – AMT Adjustment
Depending on a taxpayer’s level of Adjusted Gross Income (“AGI”), the total amount of all the itemized deductions shown on Schedule A of the Form 1040 may not be deductible for Regular Tax purposes – a reduction may apply. For 2009, this AGI level is $166,800 for all (read on...)
State Income Tax Refunds – AMT Adjustment
The AMT adjustment for State Income Tax Refunds, line 8 on Form 6251, is a reduction to your Alternative Minimum Taxable income. There isn’t much a taxpayer can do about this other than to understand just a little bit of what is going on. Just for fun, let’s start with the IRS’ (read on...)
Alternative Minimum Tax (AMT) Part 2 – What You Can Do to Reduce Its Impact on You and Your Taxes
Did your tax bill go up dramatically this year, courtesy of the alternative minimum tax (AMT)? You’re not alone. Every year, this happens to more and more people. That’s because the single exemption allowed in the AMT has not kept pace with inflation. Read on for some things you (read on...)
Alternative Minimum Tax (AMT) Part 1 – What is it and Could it Affect How Much You Pay in Taxes?
Are you affected by the alternative minimum tax? Or worried you might be? You have reason to be concerned. Few of the government’s changes to the tax system have had a more adverse effect or have caused as much anger and frustration as the alternative minimum tax (AMT). But you don’t (read on...)
Alternative Minimum Tax (AMT) Part 1 – What is it and Could it Affect How Much You Pay in Taxes?
Are you affected by the alternative minimum tax? Or worried you might be? You have reason to be concerned. Few of the government’s changes to the tax system have had a more adverse effect or have caused as much anger and frustration as the alternative minimum tax (AMT). But you (read on...)