Alternative Minimum Tax – Does AMT Apply To You?

Are You Getting All Your Deductions?

The alternative minimum tax is a procedure to keep the wealthiest Americans from avoiding tax paying responsibilities. As is typical of the federal government, the failed to include any language adjusting for income growth. As a result, the alternative minimum tax creams many taxpayers even though it was never intended to cover them.

So, why don’t our beloved leaders amend the relevant codes? Politicians giving up money they can spend on wars and favorite, but unnecessary, projects in their districts to keep voters happy? Indeed, you aren’t that naïve anymore. They will talk about repealing or modifying it, but it never seems to happen. Hmmmm…

You must take a straightforward step to determine if the alternative minimum tax applies to your situation. Fill out your taxes using the regular 1040 and alternative minimum tax forms. What a complete waste of time. Fortunately, the IRS seems to agree.

Like those handy online mortgage calculators, the IRS has taken the alternative minimum tax into the digital world. It has created a new online tool to enter the relevant information and determine if you are subject to the alternative minimum tax. One goes to the IRS website, searches for “AMT Assistant,” and enters information. If you have your financial number handy, the process takes five to 10 minutes. Suppose you don’t add however much time it takes to get your records together.

You might be a little nervous about entering financial information on the IRS site. What if they are tracking you? Don’t worry. It is anonymous. The information can’t be tracked back to you unless the IRS wants to hunt IP numbers through hosting companies and computer systems. Given it takes 30 minutes to get an IRS representative on the phone, it is doubtful this will occur.

When you’ve got your courage up to full tilt, give it a try. Maybe, just maybe, you’ll find you aren’t subject to the alternative minimum tax.

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Categorized as Tax
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