http://finance.senate.gov/hearings/testimo...ctest052305.pdf The bottom line: "...with incomes between $100,000 and $200,000 ... for tax year 2006, over 75 percent of taxpayers ... will be subject to the AMT.". This would increase number of households paying AMT from ~4 Million in 2005 to ~20 Million in 2006. <Page 3 in the above link.> How will AMT affect your tax credit? http://taxes.about.com/od/deductionscredit...idtaxcredit.htm http://taxes.about.com/b/a/252728.htm "...The credit will not reduce your alternative minimum tax, if that applies to you...". <First about.com article, second page.> Temporary fixes which limit the number of people affected by AMT have become an annual ritual for congress, but they have not yet been passed for 2006.
<div class='quotetop'>QUOTE(j24816 @ May 8 2006, 07:37 PM) [snapback]251907[/snapback]</div> Correct, but Congress is slogging away at it even as we write. See this Associated Press story from this afternoon (Tuesday May 9). There's no guarantee, but there are so many taxpayers who would be affected for the first time this year by AMT that Congress can't help but listen. It's an election year.
<div class='quotetop'>QUOTE(highroute @ May 9 2006, 07:09 PM) [snapback]252425[/snapback]</div> Congress slogs away at a lot of things. Only about 1% of things they slog away at get passed into law. Don't count your chickens before they're hatched. AMT catches a lot of new taxpayers every year.
<div class='quotetop'>QUOTE(jonlink @ May 9 2006, 08:20 PM) [snapback]252457[/snapback]</div> They reached a compromise today that will prevent the 15,000,000 being subject to the AMT. Of course it will also extend the tax breaks for the richest 1% as well but you can't have everything.
