Congress grants late reprieve from the AMT — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily

Congress grants late reprieve from the AMT

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in Small Business Tax

It went down to the wire, but Congress finally provided some alternative minimum tax (AMT) relief.

Here’s the skinny: Your potential AMT liability is reduced by an exemption amount based on your filing status. Congress passed a new law raising the exemption amounts for 2007 tax returns:

  • $66,250 for joint filers (up from $62,550)
  • $44,350 for single filers (up from $42,500)
  • $33,125 for marrieds filing separately (up from $31,275)

This is just a temporary fix for 2007. For 2008, the exemption amounts are scheduled to revert to 2001 levels unless Congress takes further action. Plus, the exemption amounts are reduced for certain high-income taxpayers.

And that’s not all:
The changes came too late for the IRS to fully accommodate. This will likely delay refunds for some taxpayers and cause other complications.

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