Tuesday, March 19, 2013

Will The Alternative Minimum Tax Affect You?

For those who aren’t familiar with the Alternative Minimum Tax (AMT), let us shed some light on the topic. AMT was implemented as an effort to ensure that we all pay at least a minimum amount of tax on our earnings, despite all of the tax credits, deductions and exclusions that many of us claim. 

For 2012, the AMT exemption levels for the various tax statuses are as follows:

                Single and Head of Household                             $50,600

                Married Filing Joint and Qualifying Widow(er)      $78,750

                Married Filing Separate                                         $39,375

If your taxable income, based on filing status, is greater than the AMT exemption levels listed above, you may have to pay the AMT rather than the amount of tax based on your income less your deductions. 

Seeing as there are different rules used when calculating the AMT, we strongly recommend you utilize a professional tax preparer to complete your returns. A seasoned tax professional will be able to help you calculate the tax levels correctly, possibly saving you money. 

No comments:

Post a Comment