Comments on: My First Encounter with the Alternative Minimum Tax (AMT) http://www.fivecentnickel.com/2006/06/30/g11-my-first-encounter-with-the-alternative-minimum-tax-amt/ personal finance tips, tricks, and commentary Sat, 21 Nov 2009 18:35:25 -0500 http://wordpress.org/?v=abc hourly 1 By: tax liens http://www.fivecentnickel.com/2006/06/30/g11-my-first-encounter-with-the-alternative-minimum-tax-amt/comment-page-1/#comment-36555 tax liens Mon, 13 Nov 2006 04:48:42 +0000 http://www.fivecentnickel.com/2006/06/30/g11-my-first-encounter-with-the-alternative-minimum-tax-amt/#comment-36555 Under the second fix, you can use your nonrefundable personal tax credits (such as the dependent care credit and the Hope Scholarship and Lifetime Learning higher education credits) to reduce both your 2006 regular tax and AMT bills (same as for 2005). Under the second fix, you can use your nonrefundable personal tax credits (such as the dependent care credit and the Hope Scholarship and Lifetime Learning higher education credits) to reduce both your 2006 regular tax and AMT bills (same as for 2005).

]]> By: John http://www.fivecentnickel.com/2006/06/30/g11-my-first-encounter-with-the-alternative-minimum-tax-amt/comment-page-1/#comment-10757 John Fri, 30 Jun 2006 14:07:43 +0000 http://www.fivecentnickel.com/2006/06/30/g11-my-first-encounter-with-the-alternative-minimum-tax-amt/#comment-10757 The $58,000 exemption for 2005 was just recently increased to $62,550 for 2006 only, with more action needed to extend it beyond 2006. Here's the details: One-year Alternative Minimum Tax Fix TIPRA includes two quick fixes, for this year only, to the individual alternative minimum tax (AMT) rules. These changes will prevent millions more (possibly including you) from owing the dreaded AMT this year. Under the first fix, the 2006 AMT exemption amounts are increased as follows: * To $62,550 for married individuals who file jointly (up from the 2005 figure of $58,000). Without the fix, the 2006 exemption would have been only $45,000. * To $42,500 if you are a single individual or head of household (up from the 2005 figure of $40,250). Without the fix, the 2006 exemption would have been only $33,750. Under the second fix, you can use your nonrefundable personal tax credits (such as the dependent care credit and the Hope Scholarship and Lifetime Learning higher education credits) to reduce both your 2006 regular tax and AMT bills (same as for 2005). You will also be able to use the new residential and nonbusiness energy property credits to reduce both of these taxes for 2006. So, if you are considering making energy efficient improvements to your home, you might want to do it now rather than waiting until next year. The $58,000 exemption for 2005 was just recently increased to $62,550 for 2006 only, with more action needed to extend it beyond 2006. Here’s the details:

One-year Alternative Minimum Tax Fix

TIPRA includes two quick fixes, for this year only, to the individual alternative minimum tax (AMT) rules. These changes will prevent millions more (possibly including you) from owing the dreaded AMT this year. Under the first fix, the 2006 AMT exemption amounts are increased as follows:

* To $62,550 for married individuals who file jointly (up from the 2005 figure of $58,000). Without the fix, the 2006 exemption would have been only $45,000.

* To $42,500 if you are a single individual or head of household (up from the 2005 figure of $40,250). Without the fix, the 2006 exemption would have been only $33,750.

Under the second fix, you can use your nonrefundable personal tax credits (such as the dependent care credit and the Hope Scholarship and Lifetime Learning higher education credits) to reduce both your 2006 regular tax and AMT bills (same as for 2005). You will also be able to use the new residential and nonbusiness energy property credits to reduce both of these taxes for 2006. So, if you are considering making energy efficient improvements to your home, you might want to do it now rather than waiting until next year.

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