First Part: Higher AMT Exemptions
The liberalized AMT exemption amounts for 2007 are:
$66,250 for married individuals filing jointly and surviving spouses (up from $62,550 for 2006)
$44,350 for unmarried individuals (up from $42,500).
$33,125 for married individuals filing separately (up from $31,275).
Without this change, the AMT exemption amounts for 2007 would have been much smaller: $45,000, $33,750, and $22,500, respectively.
Second Part: Personal Nonrefundable Credits Can Offset AMT Liabilities
The second part of the patch allows so-called personal nonrefundable tax credits to help offset your 2007 individual AMT bill, as well as your regular tax bill (the same credits could be used for 2006). Here are the personal credits you can use.
Dependent child credit
Hope Scholarship and Lifetime Learning education credits
Dependent care credit
Adoption credit
Retirement saver's credit
Credits for energy-efficient improvements and equipment for your home
Several other relatively arcane credits
Bottom Line: For 2007, higher AMT exemption amounts and the ability to use personal tax credits will not only help you reduce your exposure to the AMT, but will also insulate our beloved incumbent politicians from massive voter discontent for the time being. Keep in mind, however, that yet another patch will be required to preserve the status quo for 2008 and beyond.
To the person that put himself through 8 years of school, congratulations. I would expect someone with your extensive educational background would understand the fundamental status of our economy and the causes, as well as an individuals right to pursue the American dream. I have some questions for you. To begin with, why are the middle class citizens of this country dropping in class and disappearing at an alarming rate? Why does Warren Buffet pay a 17% tax on his income compared to his secretary's 30%? When did a fundamental human right to bear children and own a home to provide shelter for your family become a social economic privilage? The one thing you have to understand my educated friend is that there is a bigger machine at work, much bigger than the individuals expressing there hardships and frustrations, but 300 million individuals speaking together we can change America for the better and that is what you see happening here.
If you don't like your life change it. I put myself through 8 years of college with no help and no money! Why does everyone feel they should hold other people and/or entities responsible for their bad choices in life? By the way, I am dying to know what job the person has that only pays 20 grand for a college degree and does not offer medical insurance. McDonalds pays more than that. To the 2 people who can't live on 80 grand try living within your means. And to all the people who have kids they can't feed. Here is a concept, if you can not afford them don't have them!!!!!Another brillinat idea of a concept,If you can't afford a home don't buy one! It is no great sin to live in a beautiful townhome or Apartment. Give me a break, I went to read about tax laws and I get a bunch of failure to take responsiblity whiners. Where were your parents when the values were handed out?
Of course if you didn't have teachers (underpaid of course) to teach you in the first place, you wouldn't have the $300K salary at all. I wonder how all the 'self-made' professionals think they made it this far in life without any help. The people who teach us, protect us, and defend us are the ones who 'should' be getting those higher salaries. But that will never happen in America! And YES--some of us teachers have 4.0 grade point averages in undergraduate and graduate schools as well! (wanna know a secret? Some of us also have doctorate degrees as well). What do we make, you ask? A DIFFERENCE...
Cemetery, I hear you. Perhaps you should read the new book No Free Lunch. I read short review of it the ther day, and did everyone know that folks who made over 1.7 million saw their tax burden decrease in 2006? As the article said, the folks who make around $300,000, the laywers and doctors who actually have to work for a linving (unlike some of those who make millions) are the ones bearing the tax brunt.
$300,000 is a really nice salary, but it's certainly not enough to make you independently wealthy. How about the folks who make much more than they can reasonably spend (barring idiots like MC Hammer) pay a little more? Some of the uber-rich flat out state that they don't pay enough taxes. Granted, they only make up 1% of the population, but if the regular folks are getting reamed, the rich ones should too! ;)
I make under $100,000, but I get a nice chunk taken out of each paycheck by Uncle Sam.
To everybody who posted here: Get over it!! Quit whining, get off your ass and do something!! God...you people sound like a bunch of babies!!! wah wah wah