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  • Alternative Minimum Tax

    Posted this at Gamesquad too.

    I was going over the IRS website the other night. Yeah, fun, I know. I downloaded forms and instructions for 2007 so I could estimate my taxes for the year b/c I was curious.

    It appears that the exemption amount for the AMT was reduced from about 62K to 45K for a married couple. As it turns out, if my math was correct, my wife and I just got snagged by the AMT. Together we gross around 90K, middle class to be sure, but not wealthy by any stretch. We take the standard deduction b/c we don't have enought to itemize yet, at least until we get the house next year. I recall that the AMT was designed to catch wealthy folks hiding income, etc.

    I though that one of Congress' top priorities was to reduce the web cast by the AMT and hopefully to eliminate it altogether, though that is not likely. It appears that the AMT went the opposite direction.

    Again, if my math is right, instead of my tax being $9800, it will be $11,100. I won't owe, but my refund will be smaller, and those greedy bastages in DC will get more of MY money.

    Thoughts? Knowledge on this? Opinions?
    1. Even if you could make something idiot proof they would just go out and build a better idiot.
    2. The road to hell is paved by a hard working asphalt crew of meddlesome legislators.

  • #2
    Yell at your congressman!

    The AMT is snagging more people every year. Congress created the need for it with the loop-hole ridden laws they right to protect large campaign donors or money losing industries [well, often the same thing].

    Kill the AMT and start deleting corporate tax credits and rebates.
    Stop subsidizing sugar.
    Stop

    [I have to go to my "happy place" for a few minutes.]
    Any metaphor will tear if stretched over too much reality.

    Questions about our site? See the FAQ.

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    • #3
      Now you have me worried. Where's my calculator?
      Welcome to the adult world. Kinda sucks when you have to be the responsible ones and take all the pot shots from the chagrined lefties and mongoloid celebrities, who don't know their collective posteriors from sound economic policy. - 98ZJUSMC

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      • #4
        If you look at the IRS website and select the 1040A instruction file, see page 5. It says that the exemption is reduced BUT Congress may pass legislation to raise it this year, thereby alleviating the problem temporarily. Again.

        Problem is, there's not much time left in the year, and they seem to be a little hung up on the issue.

        If they don't pass a fix, this will hurt Pelosi and company. They are in charge and in order to save face with middle income America, they need to fix this.

        The politics don't concern me too much, as I detest both parties. The problem is that a tax that was designed to catch wealthy people trying to shelter money is about to hit middle income families, especially those with children. The AMT was poorly written because it was not indexed for inflation.
        1. Even if you could make something idiot proof they would just go out and build a better idiot.
        2. The road to hell is paved by a hard working asphalt crew of meddlesome legislators.

        Comment


        • #5
          Originally posted by Mini-Me View Post
          Posted this at Gamesquad too.

          I was going over the IRS website the other night. Yeah, fun, I know. I downloaded forms and instructions for 2007 so I could estimate my taxes for the year b/c I was curious.

          It appears that the exemption amount for the AMT was reduced from about 62K to 45K for a married couple. As it turns out, if my math was correct, my wife and I just got snagged by the AMT. Together we gross around 90K, middle class to be sure, but not wealthy by any stretch. We take the standard deduction b/c we don't have enought to itemize yet, at least until we get the house next year. I recall that the AMT was designed to catch wealthy folks hiding income, etc.

          I though that one of Congress' top priorities was to reduce the web cast by the AMT and hopefully to eliminate it altogether, though that is not likely. It appears that the AMT went the opposite direction.

          Again, if my math is right, instead of my tax being $9800, it will be $11,100. I won't owe, but my refund will be smaller, and those greedy bastages in DC will get more of MY money.

          Thoughts? Knowledge on this? Opinions?
          George needs a lot of money to keep "surging" all over the Middle East. Now you know where it's going to come from.
          Quis Custodiet Ipsos Custodes? Who is watching the watchers?

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