Tax Tips 2004 - AMT

You're familiar with the regular tax tables, but many taxpayers are surprised to find there is a seconed tax system. AMT, the Alternative Minimum Tax, was initially iamed at a handful of very rich taxpayers with extensive deductions, but it was never indexed for inflation! Amy Feldman, senior correspondent for MONEY Magazine says this means more than two million taxpayers are expected to pay AMT for the first time this year!

It's sort of perverse that as the regular marginal tax rates come down and the AMT tax rates don't, your chances of going into AMT get higher and higher. The estimates are that about 33 million people are going to be in AMT in another decade!

So, if you are doing your own taxes, experts say make sure you calculate AMT as well. If you are using tax software and it says AMT applies - don't ignore it!

Not meant to be a complete discussion of any tax subject. We are not responsible for any action taken based on this information, which is from reliable sources and believed to be accurate. See your tax advisor before taking any tax related actions.