Tax Law (Questions About Taxes)/New AMT

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Question
I just discovered that I made about $50 over the new AMT numbers approved today. Does that mean that I will have to pay taxes at 25% as opposed regular federal taxes?

Answer
Hello and thanks for asking today.

If you are over the AMT threshold, you are not automatically going to pay the AMT, rather it means you will have to do the calculation to determine if you will have to pay the AMT.

If you have no AMT adjustment items on your return (for example you have no dependents and you take the standard deduction), even though you are over the AMT exemption amount, you still may not be subject to the AMT.

Tax Law (Questions About Taxes)

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Randall Klein, MBA, EA

Expertise

I am an expert in personal and small business taxation, including Forms 1040, 1120, 1120S, 1065. I can answer any type of tax question except those that are requesting help in illegal tax evasion. Tax avoidance is legal, however. I do not do offshore trusts, or opt-out of the tax system type of queries.

Experience

25 years real experience in dealing with tax preparation, representation before the IRS, tax problem resolution, and more. Successfully represented clients in Offers in Compromise with more than 95% of all offers accepted.

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National Association of Enrolled Agents National Society of Tax Preparers BNI - Business Networking International

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Yahoo Answers - recognized as a tax expert.

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MBA, Weatherhead School, Case Western Reserve University. BA, Indiana University, Bloomington Enrolled Agent, licensed by US Treasury.

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Most of my clients are small business owners

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