Ugh AMT!!

[Anonymous]

Hits us every year. I can't figure out how or why exactly. Our deductions haven't gone up or changed.

Other than maxing 401K is there any strategy I can take?

Is it worth doing married filing separately perhaps?

[Anonymous]

I tried the married filing separately and our bill was higher but I am a SAHM.

[Anonymous]

Anonymous wrote:I tried the married filing separately and our bill was higher but I am a SAHM.

And you declared zero income?

[Anonymous]

I'm curious - what is your MAGI? Ours went up this year and I'm wondering if we're also going to get slammed with AMT. We don't have a ton of deductions (just mortgage, local tax and some charity).

[Anonymous]

All signs point to a full repeal of AMT this year.

Of course, all signs also point to elimination of the state tax deduction. So you'll basically be paying AMT anyway.

Best strategy to reduce your effective tax rate is to make millions more in income this year.

[Anonymous]

+1 best way to avoid amt is to make more

[Anonymous]

How much do you have to make to get out of it?

[Anonymous]

Anonymous wrote:

Anonymous wrote:I tried the married filing separately and our bill was higher but I am a SAHM.

And you declared zero income?

Yes, I have no income - no part-time. Maybe a drop in investments, but not much. I used of the computer programs that caculates both filed jointly and married filed seperately.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I tried the married filing separately and our bill was higher but I am a SAHM.

And you declared zero income?

Yes, I have no income - no part-time. Maybe a drop in investments, but not much. I used of the computer programs that caculates both filed jointly and married filed seperately.

What about head of household?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I tried the married filing separately and our bill was higher but I am a SAHM.

And you declared zero income?

Yes, I have no income - no part-time. Maybe a drop in investments, but not much. I used of the computer programs that caculates both filed jointly and married filed seperately.

What about head of household?

So you're saying op should get divorced?

[Anonymous]

It puzzels me when people say you need to make more to avoid the AMT. it is like people hate the word not more taxes.

AMT forces certain midrange incomes (mostly in the 25%-28% tax bracket with certain deduction) to pay taxes using the AMT formula which only has two brackets (26%-28%). If a good chunk of your income falls above the 33% bracket then of course you are not paying the AMT but you are paying even more taxes.

I do not know if this will make everyone feel better but think of it as we are all riding the same train and at a certain station we need to get off and ride the AMT train for a bit. Then you get off on the next stop and hop back on the old track. I am not jealous of the people who never pay the AMT; they are less fortunate than I am. I am not jealous of people who don't pay the AMT because they make too much; they have already been there and paid their dues and then paying some more.

[Anonymous]

Anonymous wrote:It puzzels me when people say you need to make more to avoid the AMT. it is like people hate the word not more taxes.

AMT forces certain midrange incomes (mostly in the 25%-28% tax bracket with certain deduction) to pay taxes using the AMT formula which only has two brackets (26%-28%). If a good chunk of your income falls above the 33% bracket then of course you are not paying the AMT but you are paying even more taxes.

I do not know if this will make everyone feel better but think of it as we are all riding the same train and at a certain station we need to get off and ride the AMT train for a bit. Then you get off on the next stop and hop back on the old track. I am not jealous of the people who never pay the AMT; they are less fortunate than I am. I am not jealous of people who don't pay the AMT because they make too much; they have already been there and paid their dues and then paying some more.

Love the train analogy for AMT.
Don't love the AMT.

[Anonymous]

Remember the M is for minimum, when you do not hit it you are paying more than the minimum for your income.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I tried the married filing separately and our bill was higher but I am a SAHM.

And you declared zero income?

damn daddy

[Anonymous]

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