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Lcannon1946:
I always try to live up to my handle, but comments like yours make it very difficult. I can only say that if you're really middle class, you're living in self delusion.
The Repubs have no interest in what's good for you. The AMT has been around a long time, and both parties are to blame. THey will never eliminate it because it brings in too much revenue. But what's causing your being ovetaxed, and how much relief have you gotten from refunds? You're being overtaxed because, going back to Raegan the Repubs habe been deregulating and shifting the tax burden from the wealthy to the middle class. Every time the wealthy get a tax break, we get hit harder. The revenue has to come from somewhere. Before RR there were 70% and 90% brackets, now the most the wealthy can pay is 28% (I think) of their total taxable income.
So, keep buying into all the propoganda and McCains new found populism, and you'll get more of the same, and you'll deserve it. As ...(Read more of this comment)far as the judges go, they may e anti-abortion, etc. but they CORPORATISTS. They'll back big business over you in a snap.
If you understand the 60 vote concept in the Senate, you know that you need to elect senators who share your financial interest. Pelosi is in the House. (Show less of this comment)

It takes 60 votes in the U.S. Senate to get anything done! Something Nancy Palosi is complaining about now, isn't she. With a 9% approval rating for congress I don't think the Democrats have anything to brag about.

Answer (continued)

The Democrat party controlled the U.S. Senate and filibustered any attempt by the Republicans to fix the AMT or to confirm judges or enact any meaningful PERMANENT tax cuts for the middle class. Even with the Bush Tax cuts, I'm paying taxes until July each year to support you and your ilk. With BO I guess I'll just have to ask him if I can have an 'allowance'.

Hi jlblackman, let's take one liberal's banal stereotype at a time shall we?

'I don't know what universe you live in, LCannon1946, but you'll be very hard pressed to find any Marxists or socialists in the Democratic Party.'

That, unfortunately, is just your perception of yourself. A simple statement of denial, not based on the facts. If, in fact, one were to poll most rank and file democrats whether they believed in the tenets espoused in the Communist manifesto, they would agree. (This has been done.) Therefore, one would be entitled to, at the very least, call them socialists.

'gated community' 'surrounded by other Republicans watching Fox News and listening to Rush Limbaugh'
Guessing again? You certainly have all the BO talking points down. Unfortunatly, I'm still working 8-10 hours a day. Just barely into my money...after paying taxes til JULY to support you and your ilk.

'Who controlled Congress 6 of the last 8 years?

An...(Read more of this comment)swer the Democrats in the Senate that filibustered any attempt by the republicans to do anything!

Try to back up your talking points with facts. Believe me, I can.



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I don't know what universe you live in, LCannon1946, but you'll be very hard pressed to find any Marxists or socialists in the Democratic Party. I'm guessing you live in some gated community surrounded by other Republicans watching Fox News and listening to Rush Limbaugh. You've bought all that garbage hook, line, and sinker.

You Republicans are always calling for a flat tax. Well here with the AMT you have your flat tax and you're screaming bloody murder about it, blaming it on the Democrats. Who controlled Congress 6 of the last 8 years? Maybe your Republican administration and Congress should have been fixing the AMT instead of driving the budget into a deficit. It's comical to watch the Repubs blaming the Democrats for the last eight years of gross incompetence. Gimme a break.

Continued from last post...

Their tax burden is eventually passed on to the consumer so we, the middle class end up paying that too.

Unfortunately, a national sales tax will never be adopted. It is too rational and would remove much of the politician's power to take from the 'wealthy' (remember the politicians definition of wealthy is any one with disposable income) and give to the poor (After deducting a sizable chunk for government 'overhead').

As we baby boomers (the ones that created the problem for the most part) retire, it will be harder to 'reform' the system as we will have our hands out for 'more' from Uncle Sam. I tried to warn my children that they should get involved, but unfortunately they went through the American school system and were good little socialists until THEY started paying significant taxes! I really feel sorry for my poor grandchildren!

Obama, the change we cannot afford! Unfortunately the Republicans aren't much better...(Read more of this comment).
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I am a retired CPA. I find it really funny that people are 'surprised' when hit by the AMT.

The AMT, to me, is a case study in what's 'wrong' with America. The Democrats gain power by appealing to class envy. They are very good at it. The real truth is they want power for themselves as the 'elite' governing class. They, for the most part, are strong backers of 'Marxism' and socialism. Is it any wonder they 'resist' indexing the AMT for inflation? Of course not as the AMT is a 'hidden' tax which through inflation grows each year. What better mechanism for a socialist to gradually tax more and more people.

The only FAIR tax would be a national sales tax. All Would pay (even drug dealers). It should replace ALL other federal taxes including the payroll tax. If tax 'equity' needs to be considered, then a 'negative' income tax could be instituted for the truly poor. BTW, I know it irks socialists, but corporations really don't pay taxes....Their tax burden is eventually p...(Read more of this comment)assed on to the consumer so we, the middle class end up paying that too.

Unfortunately, a national sales tax will never be adopted. It is too rational and would remove much of the politician's power to take from the 'wealthy' (remember the politicians definition of wealthy is any one with disposable income) and give to the poor (After deducting a sizable chunk for government 'overhead').

As we baby boomers (the ones that created the problem for the most part) retire, it will be harder to 'reform' the system as we will have our hands out for 'more' from Uncle Sam. I tried to warn my children that they should get involved, but unfortunately they went through the American school system and were good little socialists until THEY started paying significant taxes! I really feel sorry for my poor grandchildren!

Obama, the change we cannot afford! Unfortunately the Republicans aren't much better.

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My husband and I make more than $150,000 and what is sad is that we are struggling to make our payments just like everyone else due to the high cost of living

This comment by boggsl is pitiful. Why are you on a website called smartmoney in the first place? You either can't control your spending, or you are stupid. Please don't vote. Whatever you vote for would be a waste of time.

We were hit with the AMT for a one-time sale of a home. Then our social security check was reduced for the same reason. Further it seems we are only eligible for a credit if we had capital gains from stocks! How simple it sounds to vote for someone who says they won't 'raise' taxes. Taxes for whom? The fact is the richest have received the most benefits lately and the burden is on the middle class. There are CEOs who retire with millions in annual incomes and NO TAX!; written into the contract, you can find it online to read (and weep) Yes, I think the very rich should pay for the benefits the USofA gave them to get rich in the first place; they won't miss it. The income gap in America today is obscene. Blaming Hillary again? Voting against a complex amendment with many other features that doesn't solve it is not the same as voting for no solution. Do your homework - if you have time after working 2 jobs to make ends meet.

If I am paying AMT for year 2007 Tax, will the IRS require me to pay AMT for next year, 2008, even though I will be making only $140,000 in year 2008?

What is unbelievable is that a majority of Americans do not know or understand the AMT. When I talk to co-workers and friends they have no clue of what AMT means. People who have an understanding of the AMT need to get the word out because this is very important! My husband and I make more than $150,000 and what is sad is that we are struggling to make our payments just like everyone else due to the high cost of living. I am voting for a politican who won't raise taxes and will help Americans get out of the AMT that is held over our heads. WE work hard in America, but our dreams are being squashed by politicans and corporations that are making it hard to live in this country. Also, why should I be paying more to the government when they already take out so much? What a rip-off!!

Richard3211 is dead on.... I went to that link and sent a note to Obama, Hillary and Schumer. It is a ridiculous tax. I understand it was designed to make sure evaders paid something but it's nor punishing those of us that don't evade our taxes.

Note our fine Senators Osama and Clinton voted AGAINST repeal of this unjust tax while McCain voted FOR repealing the tax. The vote is strictly along party lines. No tax angers me as much as this one, it is just too blatant a form of government thievery, come on guys, let's at least PRETEND the system is fair.

WaryBuyer, you made a mistake, AMT stinks but it will not have THAT dramatic effect. With 49k in income this tax should not be hitting you at all (yet). Invest in one of the tax softwares, it will more than pay for itself.

The U.S. Senate voted down a repeal of the AMT this past week. If we want to stop this unfair tax, then we have to let our elected officials know by email and in the November elections. Here is a link to your Senator's voting record on the bill to repeal the Alternative Minimum Tax that will steal an aditional average of $2,000 from your 2009 earning if you're one of the MILLIONS of middle class Americans hit by this next year.
http://www.senate.gov/legislative/LIS/roll_call_lists/roll_call_vote_cfm.cfm?congress=110&session=2&vote=00048

I just figured my taxes. Due to before tax contributions, my AGI was a little over 49K which is over the 44,350 bar. Not using the AMT, I was looking at around $1200 refund. Using the AMT it looks like I'll owe around $4500. Can it really be that big of a difference? Hopefully I did something wrong. I can't afford to put more away as my ,soon to be, wife and I are saving for building a house. What's a guy to do?

Let me explain something that seems to not occur to our lawmakers and those who pay no taxes. When you tax the super rich they have two courses, (one) they hire lawyers and accountants or bribe the lawmakers with stuff so loop holes are left in the laws or if that no longer works (2) they move their assets to China, Mexico and India. Sound familiar to anyone? The government simply allow the taxes we have to filter down to the other wealthy.. that seems to be those who worked their whole life and followed the rules. They put their kids through college without gov. help while being taxed at a 49% rate on wages because both parents had to work. They survived they are not losing thir homes in the morgage mess. and they are now the 'wealthy'

My husband is retired military and I am a retired teacher, who had planned to continue working part time because there are still kids who need an experienced teacher and I could work part time, without benefits and help out my school and do something I enjoy. well, we just figured out our taxes, Next year I will work exactly one week so as to maintain my credential. We found out that it cost us more if I worked (even part time) than if I did not. How about a flat ten percent tax and I mean everyone even those who do not pay anything now. Unless they do not collect anything from the government. Oh yes I forgot they upped our medicare 15 or 20 % because I earned money... mind you I thought I had prepared for this by having them take out for single , zero and then 100 more as did my husband, so although I earned 7000 I took home far less.

There is an obvious solution to this problem. It was clearly stated that the AMT was written in the 70s for the wealthy. Now, it victimizes many that are not actually 'wealthy.' Obvious solution? Rewrite it! Do it! Here is another suggestion, fire some of our 'representatives' who continually fail to do what they said they would do....represent the interests of their constituents.
The reason for this lag in action? How would we pay for the world's problems if we took care of our interests? Do you really think these new presidential candidates will solve this issue? No. Like Hillary who is receiving funding from a foreign interest that is illegal. Think she cares?

I find it ironic that every time we try to find a way to screw the 'rich', we end up screwing ourselves instead! I don't buy into the whole class warfare thing. The idea that I'm doing worse because someone else is doing better is absurd. If you're doing well, more power to you! And, if you can find a way to keep the Government from taking more of your money, let me in on it! Seriously, I'm too busy living my life to worry about yours. It's too bad more people don't think like that. Here's an idea... How about we all stop worrying what other people are paying, and start worrying about how much the Government is taking from ALL of us in the first place!

Incredible ! Hit with AMT, my $160K income now disallows my wife's $35K loss in rental properties. My accountant advises we can only divorce, and I then pay her $48K in deductable Alimony. Our IRS (then several) Liability drops from $40K to like $10K (Fed & State). Off to Vegas for the divorce, we are - then to stay 'engaged & living together' until retirement - $30K+ richer per year (in a Roth) 'till then. Crazy Republic we live in what ?

I am at a loss to figure out how a simple %4000 increase in pay, coupled with a $2000 larger pretax flexible spending deduction and the same two dependents under 17, that I go from getting a $1400 refund and never having to pay AMT to not only paying AMT but owing $2600 this year. I dread this year's return. It is hard not to cry.

How about we all get on our representatives and senators and get this idiotic AMT outta here! It adds un-needed complication and stress to the tax code. Flat tax anyone?

Is income from a retirement annuity, such as annual minimum distributions, subject to the AMT?

How do you calculate allowable mortgage interest for AMT when you refinance your home from say $100,000 to $150,000 after paying on the $100,000 for five years?

HJC - Yes; it's anything that was instantiated after the first mortgage

Bessie - question for a tax pro (but I believe it IS allowed)

I have a question similar to that of H.J. Collins. If one has two homes, the primary residence has no mortgage, but the second home has a substantial one. Is that interest disallowed in figuring the AMT?

is a home equity loan considered a second mortgage?