A bill has been introduced into the Senate to repeal the AMT tax this week.
If you’re not familiar with AMT, it is the Alternative Minimum Tax, created to keep higher income taxpayers from paying too little income tax. Unfortunately, the AMT has never been adjusted, so many middle income taxpayers have fallen victim to the AMT in recent years.
The Tax Increase Prevention and Reconciliation Act of 2005 provided some AMT relief by increasing the AMT exemption amount, but this is just a one-year fix.
Without permanent changes to the AMT tax, more and more middle income taxpayers will be subject to this tax each year.
The legislation that was introduced into the Senate calls for the death of the AMT tax. Click here to read more.