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 »
IRS Successfully Processing Tax Forms Affected by AMT Legislation WASHINGTON — The Internal Revenue Service is now processing the five tax forms affected by legislation involving the Alternative Minimum Tax (AMT). On Monday, IRS systems began to accept and process returns that include the five affected forms. After several days of processing, the IRS has… Read More »
Filing Season Opens on Time Except for Certain Taxpayers Potentially Affected by AMT Patch WASHINGTON — The Internal Revenue Service announced today that the upcoming tax season is expected to start on time for everyone except certain taxpayers potentially affected by late enactment of the Alternative Minimum Tax “patch.” Following extensive work in recent weeks,… Read More »
Over 3 million refunds will be delayed until february due to congress’ late fix to the AMT bill, according to the IRS late thursday. “We regret the inconvenience the delay will mean for million of early tax filers, especially those expecting a refund,” acting IRS Commissioner Linda Stiff said. Will my refund be delayed? The… Read More »
WASHINGTON – President Bush on Monday pushed Congress to pass a one-year fix to the alternative minimum tax, which threatens to hit 23 million federal tax filers, warning that failure to do so could delay tax refunds next year. The alternative minimum tax, or AMT, is calculated alongside the income tax, with the taxpayer paying… Read More »