The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (the “Act”) was singed into law on December 17, 2010. One of the most important tax provisions in the Act deals with the alternative minimum (“AMT”) tax patch.
Under the Act, the AMT exemption amounts for the tax year 2010 will be $72,450 for married individuals filing jointly and $47,450 for unmarried individuals. The AMT exemption amounts for 2011 will be $74,450 for married individuals filing jointly and $48,450 for unmarried individuals. Many nonrefundable personal credits will be allowed to offset the AMT Remember, all exemption amounts will be subject to phase-outs for higher incomes.
Tax attorneys throughout the country, including Minneapolis tax lawyers and St. Paul tax lawyers, highly anticipated the AMT patch which would prevent millions of U.S. taxpayers from paying higher taxes. One should remember that the AMT initially was enacted as a way to make sure that the higher-income taxpayers pay their fair share into the federal budget. As time passes, however, AMT is constantly threatening to engulf more and more middle-class taxpayers.
If you think you may be subject to the AMT and would like to consult with respect to what are your options under the Internal Revenue Code, call or e-mail Sherayzen Law Office NOW!