It’s time to worry about the the Federal Alternative Minimum Tax again as tax-season is upon us.
Leave it to Congress to create a tax to make sure that the very rich pay some taxes and then not have it indexed to inflation. Now millions on non-millionaires are getting trapped by this AMT. Not only that, you the tax-payer, are supposed to figure out if you are “qualified” for the federal alternative minimum tax and follow all the convoluted rules that apply–GET AN ACCOUNTANT! The Bush Administration’s tax cuts back in the first term were supposed to provide tax relief for all, but it has triggered the AMT to capture even more Americans. Once you have been caught into the web of the federal alternative minimum tax you are there forever; “qualifying” one year means that you will pay AMT for every following tax year–Yippee! There are members of Congress that want to get rid of the AMT, but it is a huge windfall for the federal government plus they are concerned about Iraq–not the AMT. So do not count on a change soon.
All Financial Matters on the AMT