Home|Our Difference|Our Services|Team LFA|Resources|Client Log-in|Contact Us|In the Community

Financial Briefs

More Articles  Printer Friendly Version

 

Good Riddance To The Alternative Minimum Tax

Perhaps the most despised federal levy is the alternative minimum tax, which Congress passed in 1969 to prevent the loophole-savvy ultra-wealthy from shortchanging Uncle Sam.

Over the years, AMT's reach expanded to include households with more than $200,000 in AGI (adjusted gross income) annually and two-earner couples with children in high-tax states.

Under the new tax law, starting in 2018, the AMT's damage radius is reduced considerably. This alternative tax calculation still requires some individuals to calculate their tax bill twice - under regular rules and then the AMT's, and pay the higher sum. In 2018, though, a fraction of tax-filers will fall into the clutches of the dreaded AMT.

With the tax code rewritten, only about 200,000 tax filers are expected to be required to pay the AMT in 2018, way down from the 5.25 million, according to the Tax Policy Center.

Congress increased income exempt from the AMT calculation. This expands to $109,400 for joint filers, up from $84,500, and to $70,300 for individuals, up from $54,300.

The happy outcome is that the changes permit many more households making more than $200,000 to bid the AMT a not-so-fond farewell.


Email this article to a friend


Index
A Bright Outlook For Consumer Spending
Six Tips To Avoid Phishing Scams
The New Tax Law Gives Roth Converters A Little Less Wiggle Room
Bad News: The New Tax Law Curbs A Home's Deductibility
Earnings Drives Stocks, And That's A Good Bottom Line
A Framework For Wealth Management We Believe In
Bitcoin, Chasing Your Tail, And Investing

This article was written by a professional financial journalist for Larkspur Financial Advisors and is not intended as legal or investment advice.

©2018 Advisor Products Inc. All Rights Reserved.
© 2018 Larkspur Financial Advisors | 100 Tamal Plaza, Suite 110, Corte Madera, CA 94925 | All rights reserved
P: 415.924.6703 | F: 415.924.6723 Advisors@LarkspurFA.com |
Disclosure | Contact Us

Securities and advisory services offered through The Strategic Financial Alliance, Inc., (SFA), member FINRA/SIPC, which is otherwise unaffiliated with Larkspur Financial Advisors or LFA Holdings, Inc. Ronald Murphy, CLU, ChFC (CA Insurance License #0290052) is a Registered Principal and Investment Advisor Representative of SFA. J. Richard Arellano, CLU, ChFC (CA Insurance License #0186691), and Kevin Bartel (CA Insurance License #0J04584) are Registered Representatives and Investment Advisor Representatives of SFA.

We are licensed to sell Insurance Products in the following states: California, Florida, Georgia, Nevada, Oregon, Texas, Utah, and Washington.
We are licensed to sell Securities in the following states: Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, District of Columbia, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nevada, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, and Washington.