Alternative Minimum Tax: 60 Million Americans Looking for the Patch
The IRS confirmed that if Congress fails to extend the traditional patch for the AMT, approximately 60 million Americans could be affected and about 33 million taxpayers could pay the AMT for tax year 2012, up from roughly 4 million taxpayers in 2011. If the AMT exemption amounts are not increased via the “patch” for 2012, they would be significantly less than exemption amounts for 2011. Under current law, the AMT exemption amounts for 2012 in comparison to 2011 are:
|Married Filing Jointly/Surviving Spouse||45,000||74,450|
|Married Filing Separate||22,500||37,225|
The need for an AMT patch retroactive to the start of 2012 may force the lame-duck Congress to consider passing at least a small tax bill before 2013 in order to finalize 2012 tax forms and start the 2013 tax return season on time. The IRS confirmed that without an AMT patch, the tax filing season would be delayed, including refunds.
For more information about AMT and other tax issues, contact an Anders advisor. Be sure to check back Monday when we talk about the changes in tax rates.