August 29th, 2010 | 
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The Alternative Minimum Tax frequently is described as a “separate” or “parallel” tax system in an attempt to distinguish it from the “Regular” tax system that applies to all other taxpayers. But there really is only one tax system in the U.S. – our Internal Revenue Code – that applies to everyone. This article will [...]
May 31st, 2010 | Print This Post
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As has become customary, the President and the Vice President have released their recently-filed tax returns. You can find these tax returns on the White House blog by doing a search for “tax returns,” or by clicking on this link: http://www.whitehouse.gov/blog/2010/04/15/president-obama-and-vice-president-biden-s-tax-returns. An interesting thing to note is that Vice President Biden remains stuck in the [...]
May 21st, 2010 | Print This Post
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Similar to state income taxes, for Regular Tax purposes you are allowed a deduction for property taxes that you pay. Under the AMT, however, you are allowed no deduction for property taxes. This problem affects more than 90 percent of all folks stuck in the Alternative Minimum Tax, so it is something that you definitely [...]
May 17th, 2010 | Print This Post
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Every state with an income tax requires that you pay the tax throughout the year, just as the IRS does. This is done either through withholding from your paycheck – if you are an employee – or through quarterly estimated payments if you are self-employed, retired, or you are an employee but have not increased [...]
May 13th, 2010 | Print This Post
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In previous articles we talked about the different tax brackets for the Alternative Minimum Tax and the Regular Tax, and the AMT exemption and how its phase-out throws a lot of people into the AMT. This was a review of the income side of the AMT calculation – i.e., how a taxpayer’s income level can [...]
May 8th, 2010 | Print This Post
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In Part I, we discussed the different tax brackets for the Regular Tax and for the Alternative Minimum Tax, as well as the AMT exemption. For 2009 for married couples filing jointly (MFJ) the AMT exemption was $70,950. In this article we will discuss the phase-out, or loss, of the exemption as taxable income exceeds [...]
May 5th, 2010 | Print This Post
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So the Alternative Minimum Tax bug bit you again in 2009. You sit there looking at your tax return trying to figure it out. Is there a way to avoid the AMT, or are you stuck in it for life? The calculations are confusing, yet there are some basic themes underlying all of it that [...]
April 10th, 2010 | Print This Post
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Of the nearly 30 different items that can cause taxpayers to fall into the AMT, a few are much more common than others. Here is a quick look at the “top ten” list of those that snare the most Alternative Minimum Taxpayers. # 1 – Personal exemptions For the Regular Tax, every taxpayer is entitled [...]
April 6th, 2010 | Print This Post
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A common question that arises at tax time is whether to itemize or take the standard deduction. For individuals paying the Regular Tax the decision is easy, but when the AMT is involved there is one extra step that needs to be taken. As will be seen in the example below, this step can save [...]
March 21st, 2010 | Print This Post
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A common question that is asked is who has to file the IRS Form 6251, “Alternative Minimum Tax – Individuals.” The answer seemingly is simple – those who have to file the Form 6251 are those who owe the Alternative Minimum Tax. If a taxpayer does not owe the AMT, the 6251 does not need [...]
