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BFIV
Member since Apr 2012
1031 posts
| alternative minimum tax (Posted on 12/12/12 at 1:59 pm)
Unless Congress applies another "patch" to the AMT by January 1, AMT threshold for MFJ filers will revert to $44,000 AGI from the current $76,000 threshold. If this patch is not enacted, a bunch of us are going to owe the IRS several thousand dollars at tax time. Have any of the posters/readers here heard of any updates on the patch? With the fiscal cliff being the main object of media and congressional attention, it seems that this ATM issue may slip by unnoticed. I sure hope that isn't going to be the case... 
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wegotdatwood 
Arkansas Fan
Member since Aug 2009
14176 posts
| re: alternative minimum tax (Posted on 12/12/12 at 2:05 pm to BFIV)
What's the percentage going to be?
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BFIV
Member since Apr 2012
1031 posts
| re: alternative minimum tax (Posted on 12/12/12 at 2:15 pm to wegotdatwood)
The resources I have read indicate that approximately 38 million taxpayers will be caught by the AMT this tax season if the threshold reverts to $44,000 for MFJ. If the threshold remains as it is (with a patch) to extend the current threshold amount, only 12 million taxpayers will be subject to AMT. A reversion to the $44,000 amount will mean an average of a little more than $4,000.00 in increased taxes for those taxpayers caught by the AMT. quote:
What's the percentage going to be?
I don't quite understand the thrust of your question. Sorry. 
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wegotdatwood
Arkansas Fan
Member since Aug 2009
14176 posts
| re: alternative minimum tax (Posted on 12/12/12 at 2:18 pm to BFIV)
So if you make more than 44k as a couple, we'll have to pay?
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BFIV
Member since Apr 2012
1031 posts
| re: alternative minimum tax (Posted on 12/12/12 at 2:31 pm to wegotdatwood)
quote:
So if you make more than 44k as a couple, we'll have to pay?
That is correct. Your deductions (if you itemize) will be limited a LOT. Even if you don't itemize, you will still be subject to the ATM. But this scenario becomes reality only if Congress doesn't enact an ATM patch. The current threshold of $76,000 expires at midnight, December 31. Then it goes back to that $44,000 unless they extend it or increase it another couple of thousand bucks over the current level.
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lnomm34 
USA Fan
Louisiana
Member since Oct 2009
7495 posts
| re: alternative minimum tax (Posted on 12/12/12 at 2:33 pm to BFIV)
Never mind. Got it.
This post was edited on 12/12 at 2:35 pm
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wegotdatwood
Arkansas Fan
Member since Aug 2009
14176 posts
| re: alternative minimum tax (Posted on 12/12/12 at 2:34 pm to BFIV)
Is that gross 44 or after the SD has been taken out?
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lnomm34
USA Fan
Louisiana
Member since Oct 2009
7495 posts
| re: alternative minimum tax (Posted on 12/12/12 at 2:35 pm to wegotdatwood)
He said adjusted gross income, so after deductions, right?
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wegotdatwood
Arkansas Fan
Member since Aug 2009
14176 posts
| re: alternative minimum tax (Posted on 12/12/12 at 2:37 pm to BFIV)
I should be okay this year, Wife only gross 33 or 34 and I'm in school
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tigeraddict 
LSU Fan
Baton Rouge
Member since Mar 2007
4497 posts
| re: alternative minimum tax (Posted on 12/12/12 at 2:41 pm to BFIV)
quote:
alternative minimum tax
but this will be for the 2013 tax year. not 2012. so in essence they have a whole year to make this retro before it will effect anyone
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weaglebeagle 
Auburn Fan
Alabama
Member since Jan 2011
1105 posts
| re: alternative minimum tax (Posted on 12/12/12 at 2:45 pm to tigeraddict)
No, this will affect the 2012 tax year. Which is what makes this even more infuriating. A former head of the IRS said that if this patch isn't extended that it will make this tax season a nightmare for taxpayers and the IRS.
This is unbelievable, people weren't given an opportunity to plan accordingly for this to happen. It just further proves the ineptitude of the government. One, for allowing this to come so close to lapsing just for the sake of using it in political games and two for not adjusting the AMT for inflation.
The AMT is a joke, it doesn't do what it was meant to and ends up hurting only middle class taxpayers for the most part.
This post was edited on 12/12 at 2:49 pm
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wegotdatwood
Arkansas Fan
Member since Aug 2009
14176 posts
| re: alternative minimum tax (Posted on 12/12/12 at 2:46 pm to tigeraddict)
Been reading a little on it and it says it hasn't been adjusted in 40 years? Meaning inflation hasn't been considered from when it first started.
How much money do y'all think a couple making 50k would pay? Just curious.
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BFIV
Member since Apr 2012
1031 posts
| re: alternative minimum tax (Posted on 12/12/12 at 2:49 pm to tigeraddict)
quote:
but this will be for the 2013 tax year. not 2012. so in essence they have a whole year to make this retro before it will effect anyone
No sir. This will be reflected on our upcoming tax returns for tax year 2012. Here is one of the links I've been looking at. LINK
Lots of good information here. Looks like your education credits are on the chopping block, too.
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lnomm34
USA Fan
Louisiana
Member since Oct 2009
7495 posts
| re: alternative minimum tax (Posted on 12/12/12 at 2:49 pm to tigeraddict)
quote:
before it will effect anyone
Affect 
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weaglebeagle
Auburn Fan
Alabama
Member since Jan 2011
1105 posts
| re: alternative minimum tax (Posted on 12/12/12 at 2:52 pm to wegotdatwood)
Determining the AMT isn't as simple as just plugging in your income. It often has to do with the amount of deductions you will be claiming. The more deductions you claim, the higher the likelihood that you will pay the AMT. It's going to hurt people who claim things like children, mortgage interest, and medical expenses the most. I'm talking about middle income mostly.
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wegotdatwood
Arkansas Fan
Member since Aug 2009
14176 posts
| re: alternative minimum tax (Posted on 12/12/12 at 2:56 pm to weaglebeagle)
Damn, will be in the future.
frick Obama
LINK
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fiyahbyrd157
LSU Fan
Houston, TX
Member since Aug 2005
169 posts
| re: alternative minimum tax (Posted on 12/12/12 at 3:08 pm to wegotdatwood)
If you make over the exemption threshold, you only have to pay AMT if the AMT calculation exceeds your 1040 regular tax calculation.
As someone else said this usually occurs when you have lots of personal deductions on your 1040 (multiple children, education credit, etc).
I won't go into income levels or anything, other than the fact that it is higher than the exemption, but last year I had deductions in excess of 25K and did not have to pay AMT (I guess I need more deductions).
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BFIV
Member since Apr 2012
1031 posts
| re: alternative minimum tax (Posted on 12/12/12 at 8:31 pm to fiyahbyrd157)
quote:
but last year I had deductions in excess of 25K and did not have to pay AMT (I guess I need more deductions).
That is because the threshold was about 76K. This year, without the patch, the threshold is going to be 45K instead of the 44K I mentioned earlier. (So many numbers to remember...) And I sure hope you and I don't get hit this year and lose most of our deductions. Maybe our esteemed Congress will get off their partisan butts and do something about this before Jan. 1?
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Poodlebrain
LSU Fan
Way Right of Rex
Member since Jan 2004
12911 posts
| re: alternative minimum tax (Posted on 12/12/12 at 9:19 pm to wegotdatwood)
quote:
What's the percentage going to be?
Do you mean the tax rate? If so, it starts at 26% of alternative minimum taxable income and rises to 28% for higher higher incomes.
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wegotdatwood
Arkansas Fan
Member since Aug 2009
14176 posts
| re: alternative minimum tax (Posted on 12/12/12 at 9:24 pm to Poodlebrain)
Thoughts on amt, Poodlebrain?
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