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Old 12-17-2012, 09:35 PM
 
1,082 posts, read 2,513,806 times
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Quote:
Originally Posted by kutra11 View Post
AMT isn't my biggest concern! Based on the fiscal cliff discussions, my taxes are going up!!
Yes, our taxes will be going up no matter what comes of the B&O circle jerk. As mentioned, though, if you live in NY or California, you're a victim of the annual hold-up called AMT, which insidiously disallows a percentage of your main deductions. The real problem is it is not adjusted for inflation, so every year we have this dance where Congress comes up with a 'patch.' It, like so many things out of Washington, is fairly useless.

The AMT is really not related to the whole fiscal cliff charade. The fiscal cliff implications are much more grave on a macro-level, whereas AMT impacts individuals.

What should really concern you, what should concern all on the this board, is Congress and two Presidents could literally give away Trillions in bail-outs, but today our feckless leaders want to cut emergency unemployment benefits and raise Medicare eligibility age to 67, among other things, in order to cut the deficit. Kind of like using a slingshot against a howitzer.
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Old 12-17-2012, 09:52 PM
 
40,992 posts, read 22,305,863 times
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Quote:
Originally Posted by Kramer68 View Post
AMT does stand for Alternative Minimum Tax and it does not only apply to the rich. It was set up originally to ensure that wealthy people could not use deductions/exemptions to reduce their taxes too much but now it seems to catch more upper middle class people.
True. This tax was originally a "tax the rich" tax I think it started in 1969 and $250K was the starting point. The tax was written but was not adjusted for inflation. ATM expired 2011 you pay when you or submit you're 2012 tax return.

It is not part of the fiscal cliff and notice how quiet they are about it.

This is exactly why I say NEVER mandate the government to increase taxes regardless of reason, regardless of who. It will eventually get you. Let them find cuts first.

For tax year 2012, the alternative minimum tax exemption amounts are scheduled to revert to $45,000 for married couples filing jointly, $33,750 for single and head of household filers and $22,500 for married couples filing separately. If you do you're own taxes the 1st time most people hear about the Alternative Minimum Tax is when they get a letter from the IRS saying that they still owe money.
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Old 12-18-2012, 02:56 AM
 
84,053 posts, read 81,589,264 times
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the tax actually kicks in very low. it starts at 75k and works off a ratio of income to deductions.
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Old 12-18-2012, 09:56 AM
bg7
 
7,697 posts, read 8,923,537 times
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I get hit every year with AMT. I live in a high tax state and have three kids. Every year my "normal" fed tax is ok, but the AMT whacks me. Big fat check to the Feds.

What keeps me cheerful is people earning ten times as much as me, but having that income sourced differently, don't pay AMT, and get to take their usual deductions. God bless 'em.
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Old 12-20-2012, 12:43 AM
 
4,281 posts, read 3,143,412 times
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Quote:
Originally Posted by petch751 View Post
True. This tax was originally a "tax the rich" tax I think it started in 1969 and $250K was the starting point. The tax was written but was not adjusted for inflation. ATM expired 2011 you pay when you or submit you're 2012 tax return.

It is not part of the fiscal cliff and notice how quiet they are about it.

This is exactly why I say NEVER mandate the government to increase taxes regardless of reason, regardless of who. It will eventually get you. Let them find cuts first.

For tax year 2012, the alternative minimum tax exemption amounts are scheduled to revert to $45,000 for married couples filing jointly, $33,750 for single and head of household filers and $22,500 for married couples filing separately. If you do you're own taxes the 1st time most people hear about the Alternative Minimum Tax is when they get a letter from the IRS saying that they still owe money.
While I agree with this on a fundamental level, the result of not raising revenue is indeed much bigger cuts. Medicare and Social Security are the biggest targets. Unemployment benefits, education funding, first responders...

Complicating matters is that it is estimated that if the across-the-board "fiscal cliff" cuts take place one million defense contract jobs may be eliminated. AND taxes will revert to much higher levels.

Right now I agree we need a balanced approach, so that no one segment of society shoulders the brunt of the problems that have been percolating for decades.
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Old 12-22-2012, 08:48 AM
 
1,474 posts, read 3,239,208 times
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"Cover, duck and roll". That was the government's advice in the 50s for us. That should have been an indicator of things to come with advice from the "authorities".

Congress spends money. They need more revenue. Most people who vote do not pay income taxes. They have no skin in the AMT game. Congress has no reason to change things this year.
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Old 12-22-2012, 09:14 AM
 
Location: Great State of Texas
86,068 posts, read 76,326,317 times
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Quote:
Originally Posted by mathjak107 View Post
the tax actually kicks in very low. it starts at 75k and works off a ratio of income to deductions.
I've gotten hit with AMT off an on over the years. It's a PITA with the worksheets and such.

But without the patch it's expected to hit a record number of filers.
Without the patch it will hit incomes as low as $33K (single), $45K (married)

How's that for an alternative minimum tax on "the rich" ?

It was never indexed for inflation and that's why it was patched each year.

If not patched the government is expected to take in an additional $132 billion in revenue; about $4200 per taxpayer average.

TPC Tax Topics | quick_amt

And while the AMT is not part of the fiscal cliff issue, it seems to have been caught up in it.

Fiscal cliff: Lack of AMT fix could delay 100 million tax returns - Dec. 19, 2012
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Old 12-22-2012, 09:18 AM
 
Location: Great State of Texas
86,068 posts, read 76,326,317 times
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The AMT patch expiring is just one of several expiring tax changes.
Also expiring:
Deduction of sales tax, educator expense deduction, tuition deduction.

Mark Steber: Big Changes Ahead for 2013 Tax Season!
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