What About the Tax Payers?
Here’s an overview of how you could benefit from the incentives for individuals in the Emergency Economic Stabilization Act of 2008.
Alternative Minimum Tax (AMT). The AMT was created nearly 40 years ago to ensure that very wealthy individuals pay their fair share of taxes. The AMT is a tax that eliminates many deductions and credits thus increasing the tax liability for an individual.
You may have to pay the AMT if your taxable income for regular tax purposes plus any adjustments and preference items that apply to you are more than the AMT exemption amount.
The AMT was not indexed for inflation. The result? It has been ensnaring middle-income taxpayers. To prevent this Congress created an AMT “”patch.”” The 2008 patch raises the AMT exemption amounts as follows:
