AMT Update and Last Minute Tax Planning
Congress passed last minute legislation to help as many as 20 million taxpayers avoid getting hit with the Alternative Minimum Tax (AMT).
If you’ve been hit with the AMT in the past, chances are you still will be. The tax change will help primarily those who have not incurred the AMT before, but it could prevent them from incurring it.
If you have been saved from the AMT for 2007, you still have a few days left to max up on your deductions. You may not have to worry about too many deductions throwing you over the limit into AMT-land.
So how do you know if you’ve been saved from incurring the AMT? This article from the Chicago Tribune suggests running last year’s tax software (such as TurboTax) to see if you would have avoided the AMT. You’ll probably be in the same boat for 2007. Or you could call your accountant, too, and get his or her opinion.
