Despite recent tax-law changes, a stunning 4.6 million Americans are expected to pay the AMT in 2018.
Please refer to our transcription below if it is easier and/or more convenient for you:
Originally aimed at only 155 wealthy tax payers, the alternative minimum tax is projected to affect 4.2 million payers in 2014 and despite changes included in the tax payer relief act of 2012. A stunning 5.4 million Americans are expected to pay in 2018!
The AMT was instituted in 1969 to ensure that wealthy tax payers did not use loop holes to escape paying federal taxes and in spite of last minute patches and loan changes, over time, more Americans have been required to pay.
Here are 3 tips that may help you manage your exposure to the AMT.
Time your tax payments. If you will be subject to the AMT next year, you might want to consider paying your local and state taxes before the end of this year. That way, you may gain a deduction that may otherwise be lost.
Check your municipal bonds. The interest income generated by certain tax free stated local municipal bonds may be fully taxable if you’re subject to the AMT.
Understand your capital gain. A capital gain may increase your income, so it could cause you to lose part or all of your AMT exemption.
One study found 47% of tax payers how pay the AMT or affected by capital gains.
Will you be paying the AMT this year? Being aware of some of the rules could help you avoid some surprised down the road.
Schedule a review today.
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