Form 8332-AMT

[jainen]

Disclaimer: This is part of a series of posts that forum moderators have identified as containing “bogus information.”

The IRS has issued Form 8332-AMT for tax year 2006. It is required for non-custodial parents claiming a child in a year subject to Alternative Minimum Tax or the AMT credit. This form fills a gap for the many taxpayers whose divorce or separation agreement did not provide for the consequences of Alternative Minimum Tax. The instructions include a new Dependency Support Worksheet to determine eligibility based on AMT-adjusted income and deductions.

[Bees Knees]

That’s no joke…

The seminar speaker from last week had a graph showing tax collections from regular tax verses AMT. Assuming Congress does nothing, AMT revenue will exceed regular tax revenue for the first time next year. He also said AMT revenue is coming from middle income taxpayers. Since AMT is a flat 26% or 28% tax rate, high income taxpayers in the 35% rate are usually not hit with AMT. It is a money maker for the government as the majority of middle class taxpayers are now subject to AMT. He also said that if the AMT exemption amount were indexed for inflation back when it first began, the exemption amount would be somewhere in the $400,000 range today, rather than the current $62,000 range.

Maybe that is why Congress is not going to fix this thing.

[Snaggletooth]

Democrats to Fix It?

As incredible as it may sound, fixing the AMT might be done by the Democrats.

Appears like someone has plotted the receipts from AMT differential by STATE. And over 80% of the receipts are from the Blue States! Of course this would have to be revenue-neutral, so they will have to find a way to soak the evil rich who saved gazillions because of the Bush Tax cuts...