Welcome Guest. Register Now!  



Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 03-03-2008, 12:54 PM
TaxGuru's Avatar
Tax Guru
 
Join Date: Jan 2007
Location: New Jersey, USA
Posts: 2,417
Blog Entries: 3
What is the Alternative Minimum Tax?

Our US Tax Code provides certain preferential tax treatment to certain kinds of income and it also allows certain special tax deductions and tax credits for some kinds of expenses on tax returns.

Sometimes, these result in high income taxpayers not paying what is termed "their fair share of taxes". In fact, prior to the enactment of the Alternative Minimum Tax legislation, there were situations that high tax earning taxpayers had lower tax rates than the average middle class taxpayers!

Thus, Congress attempted to correct this anomaly by creating the Alternative Minimum Tax. The alternative minimum tax "attempts to ensure that all taxpayer who benefit from these tax advantages will pay at least a minimum amount of tax on their tax return."

The alternative minimum tax "is a separate tax computation that, in effect, reduces the tax benefit of certain tax deductions and tax credits on your tax return, thus creating a tax liability for the taxpayer who would otherwise pay little or no tax on his/her tax return."

This mechanism it was thought, by the infinite wisdom of Congress would correct the problem of high income taxpayers not paying their fair share of the taxes.

Unfortunately, as the years went by subsequent to the passage of the AMT Tax into law, more and more middle class families are finding out that they are subject to the alternative minimum tax on their tax returns! This is totally contrary to what was "originally designed to charge an additional tax on certain tax preference items commonly deducted by the rich on their tax returns."

Now, Congress has been reluctant to act upon this insidious tax that is creeping rapidly into the Middle Class Families. They are clearly being penalized very hard especially during todays difficult financial times.

__________________
Find a CPA near you!

Ask TaxGuru Please refer to the legal disclaimer.


Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #2 (permalink)  
Old 03-23-2015, 04:26 AM
Junior Member
 
Join Date: Mar 2015
Posts: 6
Regular tax income

Regular tax income can be reenactment for the possibility of fare taxes to disabled tolerance on alternative tax refund.



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
IRS Issues List of Vehicles that Qualify for the Alternative Motor Vehicle Credit! TaxGuru Tax News 0 12-10-2007 10:30 AM
S Corp Alternative Minimum Tax tpowell Alternative Minimum Tax 0 10-18-2007 08:11 PM
What is the minimum NYS filing tax for an LLC? Angela2 Sole-Proprietorship 1 02-22-2007 11:58 AM
New Jersey Minimum S Corporation Tax Rate Leah S-Corporation 0 02-16-2007 08:47 AM
IRS Offers Online Alternative Minimum Tax Assistance atgadmin Tax News 0 02-01-2007 04:14 PM

Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning
 
 
 

» Recent Tax Q&A
No Threads to Display.