Wednesday, November 19, 2008
ONE YEAR, STOP-GAP PROVISION ON AMT
I know it's not quite time to think about taxes, but here's an update on the Alternative Minimum Tax (AMT). To prevent the unintended result of having millions of middle-income taxpayers fall prey to the AMT, Congress has once again relied on a temporary "patch" to the problem. This time a one-year extension of the 2007 exemption amounts, increased slightly. Under the new law, for tax years starting in 2008, the AMT exemption amounts are increased to (1) $69,950 in the case of married individuals filing a joint return and surviving spouses; (2) $46,200 in the case of unmarried individuals other than surviving spouses; and (3) $34,975 in the case of married individuals filing a separate return.