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Wednesday, October 8, 2008

Alternative Minimum Tax (ATM)

Under changes in the Emergency Economic Stabilization Act of 2008 (H.R. 1424), the Alternative Minimum Tax (ATM) exemption on income is increased to $69,950 for joint filers and $46,200 for individuals for 2008.

The amount for 2007 was $66,250 for joint filers and $44,350 for individuals.

If Congress had not changed the law, the amounts would have fallen to only $45,000 for joint filers and $33,750 for individuals.

The AMT relief prevents 24 million families from facing an average tax increase of at least $2,000 each.

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