How to Avoid Alternative Minimum Tax

Congress authorized the alternative minimum tax to prevent higher-income taxpayers from using individual tax deductions to bring their tax rates below the rates paid by lower-income taxpayers. However, because it wasn't indexed for inflation until 2013, it increasingly hit middle-income taxpayers over the years. If you are subject to the AMT -- as of publication, single taxpayers making as little as $52,800 could be -- you probably can't avoid it, but there are some things you can do to minimize your exposure.

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General Approaches to Alternative Tax Minimization

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The alternative minimum tax is a special tax originally designed to prevent a handful of extremely wealthy Americans from using loopholes to.

The Internal Revenue Service (IRS) imposes an income tax on individuals, under the authority of U.S. Code Title 26, Subtitle A, Chapter.

In 1969, Congress passed the Alternative Minimum Tax, which is a parallel tax system that prevents wealthier citizens from taking advantage of.

They say "Nothing is certain except for death and taxes", but I say that's foolish. There are numerous ways that you can.

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Source: ehow.com

Category: Taxes

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