AMT ( alternative minimum tax ) haunts middle class
the alternative minimum tax started out as a way to ensure that the wealthiest Americans paid their fair share of taxes. But as many families know all too well, it now ensnares people much closer to the middle class, and it hits more upper-middle income taxpayers than those at the very top, according to a recent study by the Urban Institute. No wonder it's often referred to as the "stealth tax."
There may not be much you can do to avoid the A.M.T., especially if you have children and live in a high-income state like New York or California (the A.M.T. rules disallow deductions for dependents and state income taxes as well as several others).
December 22, 2010, 3:57 PM
Minimizing A.M.T. Through Charitable Donations
By TARA SIEGEL BERNARD