Economics, Econometrics and Finance
4 years ago

Middle-class taxpayers face higher taxes due to complex AMT calculations.

More Alternatives in the Complex World of the Alternative Minimum Tax: The Election to Itemize Deductions
Francine J. Lipman, Nathan Oestreich, James E. Williamson

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When deciding between standard deduction and itemizing deductions for taxes, it's important to consider the alternative minimum tax (AMT). If AMT applies, choosing to itemize deductions could lower tax liability. Tax professionals need to do extra calculations to find the best option. Simplifying AMT calculations would benefit both taxpayers and the government. By 2010, AMT is expected to affect many middle-class households. It's crucial for all taxpayers to consider AMT when planning taxes to avoid paying more than necessary.