Good Riddance To The Alternative Minimum Tax

March 6, 2018

Perhaps the most despised federal levy is the alternative minimum tax, which Congress passed in 1969 to prevent the loophole-savvy ultra-wealthy from shortchanging Uncle Sam.

 

Over the years, AMT's reach expanded to include households with more than $200,000 in AGI (adjusted gross income) annually and two-earner couples with children in high-tax states.

 

Under the new tax law, starting in 2018, the AMT's damage radius is reduced considerably. This alternative tax calculation still requires some individuals to calculate their tax bill twice - under regular rules and then the AMT's, and pay the higher sum. In 2018, though, a fraction of tax-filers will fall into the clutches of the dreaded AMT.

 

With the tax code rewritten, only about 200,000 tax filers are expected to be required to pay the AMT in 2018, way down from the 5.25 million, according to the Tax Policy Center.

 

Congress increased income exempt from the AMT calculation. This expands to $109,400 for joint filers, up from $84,500, and to $70,300 for individuals, up from $54,300.

 

The happy outcome is that the changes permit many more households making more than $200,000 to bid the AMT a not-so-fond farewell.

This article was written by a professional financial journalist for Private Group Wealth Management, LLC., and is not intended as legal or investment advice.

© 2018. All Rights Reserved.

Share on Facebook
Share on Twitter
Please reload

RECENT POSTS
Please reload

Investment advisory services offered through (RIA Name), a registered investment adviser. This site is published for residents of the United States only. Representatives may only conduct business with residents of the states and jurisdictions in which they are properly registered. Therefore, a response to a request for information may be delayed until appropriate registration is obtained or exemption from registration is determined. Not all of the services referenced on this site are available in every state and through every advisor listed. For additional information, please contact PGWM, LLC at rar@pgwm.net.

© 2019 Private Group Wealth Management, LLC  

221 A Louisiana Ave, Corpus Christi, TX 78404

Tel: (361) 442-5105      Fax: (361) 888-5105       email: rar@pgwm.net

DISCLOSURES   PRIVACY   FORM ADV    CONTACT    HOME

Website Maintenance    ID•GRAPHICA   idgraphica.custom@gmail.com