Is the Alternative Minimum Tax (AMT) putting you in a tough tax position? If so, you’re not alone. This so-called “wealth tax” has become quite a burden for those in the middle class, placing restrictions on numerous deductions otherwise allowable under regular tax guidelines.
In essence, anyone subject to this type of income tax must calculate tax totals based on both standard and AMT rules, and then pay the higher of the two. Unfortunately, that can mean missing out on many valuable deductions as well as personal exemptions, including those for dependent children.
The best way you can avoid paying more than your fair share of taxes is to work with savvy tax advisors who can help you reduce the negative effects of AMT regulations. While this tax was intended to secure federal tax payment from the wealthiest taxpayers, it has never been properly adjusted for inflation. Thus, many middle class households today are feeling the sting of this controversial tax imposed more than four decades ago. In fact, in 2015, for married taxpayers filing jointly, $83,400 is the maximum income exempt from the AMT rules.
When you have questions regarding how the AMT affects you, put in a call to the tax pros at Taxation Solutions, Inc. The tax laws on this subject are tricky, and we’re well versed in how to navigate AMT roadblocks to better maximize your deductions.
Don’t let the AMT stop you from getting all the tax breaks you deserve. Call us in the Charlotte metro today!