The government continues to put Band-Aids on the AMT problem. For instance, over the past few years it has bumped up the exemption amounts available to individual filers. However, as things stand now, the exemption amounts will actually decrease for 2007 to the levels that applied for 2000.
The chart below shows the progression from 2000 through 2007.
Filing status 2000 2002 2005 2006 2007
Joint filers $45,000 $49,000 $58,000 $62,550 $45,000
Single filers $33,750 $35,750 $40,250 $42,500 $33,750
Tip: To make matters worse, the exemption amounts phase out for high-income taxpayers. The exemption is reduced by 25 cents for each dollar of AMT income above $150,000 for joint filers; $112,500 for single filers. Those figures have not been adjusted for inflation.
- Small Business Tax Deduction Strategies No matches