By Kortney Christensen, CFP®, Executive Vice President, Director of Sales and MarketingPrint This Post
Although a full repeal of the alternative minimum tax (AMT) was on the table during Congressional negotiations, only a repeal of AMT for corporations managed to escape the negotiation chopping block. AMT will continue to exist for individual taxpayers, albeit in a lessor fashion, so there is still good news for those who are currently paying AMT. The exemption amount will increase from $54,300 to $70,300 (single) and from $84,500 to $109,400 (married filing joint). The exemption phase-out levels will also be increased from $120,700 to $500,000 (single) and from $160,900 to $1,000,000 (married filing joint). These figures are indexed for inflation and are set to expire in 2025. The Tax Policy Center estimates that over 5 million taxpayers will be subject to AMT in 2017. These changes, along with the fact that many itemized deductions that were once added back to AMT for AMT calculation purposes and are now minimized or eliminated as taxpayers shift away from itemizing, will cause fewer people to be subject to AMT.
Benjamin F. Edwards & Co. does not provide tax advice, therefore it is also important to consult with your tax professional for additional guidance tailored to your specific situation.