Have you managed to duck the alternative minimum tax (AMT) so far? Your luck may be running out.
According to a newly published report by the Joint Committee on Taxation (JCT), the IRS expects a sharp increase in the number of taxpayers hit by the AMT in 2007. (Pub. JCX-38-07)
Main reasons: Unless tax law changes are made, the AMT exemption amounts revert to pre-2001 levels and certain nonrefundable personal credits no longer are allowed. At that rate, almost 31 million filers will have to pay the AMT by 2010.
Tip: Read the JCT’s full report at www.house.gov/jct/x-38-07.pdf.