Lawmakers Are Promising to Fix the Alternative Minimum Tax (AMT)

Lawmakers Are Promising to Fix the Alternative Minimum Tax (AMT).

As a Certified Public Accountant, I have heard this before so to say that I am skeptical would be an understatement.  According to the most recent from Congress, they are saying that: “As the leaders of the Congressional tax-writing committees, we want to assure you that Congress is working on legislative relief,” they wrote. “We will work to draft the AMT provision so that, in the aggregate, not one additional taxpayer faces higher taxes in 2010 due to the onerous AMT. Such legislation will allow the personal credits against the AMT and the exemption amounts for 2010 to be set at $47,450 for individuals and $72,450 for married taxpayers filing jointly.”


They added that they planned to enact AMT relief legislation in a form mutually agreeable to Congress and the President.

Understandably, this is no easy task.  The issue is even further compounded by the Bush era Tax cuts which are set to expire.  These include reduced tax rates for all individuals.  However, under the most recent news byte from the Obama Camp, the president would like compromise.  What he is referring to is to extend the Tax cuts for certain individuals, and reinstate the old brackets for the rest of us.  We will have to wait and see what will happen in 2010.