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Monday, November 05, 2012

Middle class faces quick impact from fiscal cliff in form of alternative minimum tax

The best hope for a deal to avoid the “fiscal cliff” may lie with the alternative minimum tax,an obscure provision of the tax code that is about to become alarmingly relevant to millions of middle-class taxpayers.
Unless Congress acts by the end of the year, more than 26 million households will for the first time face the AMT, which threatens to tack $3,700, on average, onto taxpayers’ bills for the current tax year. Because those people have never paid the AMT, they have no idea they are in its crosshairs — put there by a broader stalemate over tax policy that has kept Congress from limiting the AMT’s reach.
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2 comments:

Anonymous said...

what do you mean about to? I had to pay it in 2005 when I retired and it took a chunk of my retirement.

Anonymous said...

The AMT has,nt stopped.