What Should I Know to Avoid the Alternative Minimum Tax?

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What Should I Know to Avoid the Alternative Minimum Tax?

By Susan Ladika on December 21st, 2011 at 1:00 pm

The alternative minimum tax (AMT) was originally created as a way to ensure that wealthy taxpayers not take advantage of tax loopholes and instead pay a minimum amount of federal income tax. While it's a worthy goal, the AMT has not been adjusted for inflation, so the number of people required to pay the AMT grows. But the brouhaha in Congress over the payroll tax holiday also leaves the AMT "patch" - which limits the number of people required to pay alternative minimum tax – up in the air. .

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