First of all. . . my apologies. I have been away from this blog for far too long. I had some personal and professional commitments that put a lot of things in my life on hold. . . including this great blog.
So I'm back! And I'm here to start answering your questions and helping you out with your IRS problems. So ask away!
Wednesday, April 1, 2009
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2 comments:
Great Blog Jack!
I have a general understanding of the AMT question for you- I understand taxes, giving to charity (church and others) works basically like this- say I gross 100,000 and I give $5,000- the amount I am taxed on is $95,000. Easy. I can also take other deductions like mortgage interest.
But what happens if I bump up against the AMT? Do I basically give up being able to deduct from my gross as in the example above?
Thanks! Doug
Short answer. . . YES.
The AMT is the Alternate Minimum Tax one pays if they "make too much money." This means that if you make above a certain amount, and you have enough deductions to crank your taxable income down and pay less taxes, you are basically deprived of those deductions and have to pay a pre-set minimum instead.
(It's a bit more complicated than that, but those are the broad brush strokes).
Is this fair? Hell no! Especially since the law was never written to adjust for inflation. But it is the law until Congress changes it.
Thanks for the comment.
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