Reply to Help explain to me AMT tax

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[quote=Anonymous]The AMT disallows certain deductions. If you have a somewhat high income and you pay high property and/or state taxes (which cannot be deducted under the AMT), you are likely to hit the AMT. Deductions for mortgage interest and charity contributions are allowed under the AMT, but deductions for state/local taxes and property taxes are not. There is no way around it. As a previous poster said, you need to calculate your taxes both ways (using the regular tax tables and the AMT calculations) and pay whichever is higher. Turbo Tax and other tax programs will do this automatically.

The AMT hits two income couples particularly badly because of the way it calculates allowed exemptions. Neither my husband nor I would be subject to the AMT if we were single and we each had our current income. However, as a married couple we were subject to the AMT. Married filing separately does not solve this issue; you are each still subject to half of what you would have been subject to as a couple.[/quote]

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