| The good news is that the Congress has been working on an AMT patch. I have heard that the incoming Congress wants to address this key middleclass issue quickly.
You should not be that distressed on this matter as the entire middleclass with your income is currently being trapped into this AMT trap! Of all the tax returns that I have prepared in the prior 2-3 years, the maximum impact I have seen in tax dollars has been less than $3,500 from taxpayers whose taxable income matches your amounts. Thus, you should not panic and help may be on the way with a new Obama Administration.
There is no point in withholding additional amounts in taxes as you may end with over-withholding and receiving a much smaller net paycheck. This may make life financially very challenging. Further, you would find that you may actually receive a bigger tax refund in April 2010! It doesn't make sense over withholding and then letting Uncle Sam keep your money interest free till April 15h, 2010! |