The IRS Tax Bracket for 2015 tax is different, yet similar to the tax bracket for 2014. Every year, the IRS adjusts more than 40 tax provisions for inflation to make sure the numbers do not get out of whack with what is going on in the economy. IRS Tax Bracket for 2015 and… Read More »
Understanding the Alternative Minimum Tax AMT is very important for higher income taxpayers and other taxpayers who might fund themselves in situations where the AMT might apply. The tax law gives special treatment to certain kinds of income and allows special deductions for certain kinds of expenses. Congress eventually determined that not all taxpayers are situated equally… Read More »
The purpose of the AMT is to make sure that really rich people can’t just give all their money to charity instead of paying taxes. So if your income is high enough, you have to calculate your taxes twice — once the normal way, and once a second time to make sure you are paying… Read More »
The Alternative Minimum Tax attempts to ensure that anyone who benefits from certain tax advantages pays at least a minimum amount of tax. Congress created the AMT in 1969, targeting taxpayers who could claim so many deductions they owed little or no income tax.
Individuals with a higher income may be subject to the Alternative Minimum Tax. Under the tax law, certain tax benefits can significantly reduce a taxpayer’s regular tax amount. The AMT sets a limit on those benefits. If the tax benefits would reduce total tax below the AMT limit, the taxpayer must pay the higher Alternative… Read More »