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
  • LinkedIn
  • YouTube
  • Twitter
  • Facebook
  • Google+

Congress grants late reprieve from the AMT

Get PDF file

by on
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.

Related Articles...

Leave a Comment

Previous post:

Next post: