The alternative minimum tax, or AMT, is a continual tax trap for millions of middle-income taxpayers. This parallel tax system was created in 1969 to ensure wealthier taxpayers pay a minimum amount of taxes, primarily by disallowing several common deductions that are claimed under the regular tax system.
But because the AMT is not indexed for inflation, Congress must increase the income levels affected by the alternative tax.
It’s possible that tax reform in 2012 could eliminate the AMT, a longtime goal of many lawmakers. But just in case that doesn’t happen and you fear you might end up paying the alternative tax, talk with your tax adviser about ways you can limit your AMT exposure.
Get tax tips right here every day through April 15—exclusively from Berrios & Associates, Inc. on Danshamptons.com!Berrios & Associates, Inc. Main Client Support Phone Numbers Tele#631-737-8811 Fax# 631-737-8812 www.berriosassoc.com
About Berrios & Associates, Inc.
Since 1999, Berrios & Associates, Inc. has been providing a distinctive mixture of leadership-knowledge, and customer service satisfying client needs in advisory, tax, and outsourcing. Serving a diverse client base from individuals and sole proprietors to private corporations with nationwide and international locations. In the domain of accounting firms, Berrios & Associates has engraved a distinctive business based on diverse solutions through the interpersonal relationship of corporate and personal tax, corporate back office support, and business growth advisory. The firm directs clients through their everyday operations to ensure they have the right business model in place to meet their business goals.