The Potential Distributional Effects of the Alternative Minimum Tax (CRS Report for Congress)
| Release Date |
Revised Feb. 15, 2008 |
| Report Number |
RS22200 |
| Report Type |
Report |
| Authors |
Steven Maguire, Government and Finance Division |
| Source Agency |
Congressional Research Service |
| Older Revisions |
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Summary:
Temporary increases in the AMT exemption and provisions which allow taxpayersto apply nonrefundable tax credits against their AMT liabilities expired at the end of2007. Certain taxpayers will be more adversely affected than others. In general,married taxpayers filing joint returns will be more adversely affected than singletaxpayers. In addition, taxpayers with large families will be more adversely affectedthan taxpayers with small families.In terms of income, the largest increase in taxpayers subject to the AMT will occurover adjusted gross income (AGI) ranges of $100,000 to $500,000. Taxpayers withAGIs between $50,000 and $100,000 will eventually be affected, with the negativeeffects of the AMT growing substantially over time. Taxpayers with AGIs above$500,000 will not be significantly affected by the expiration of the higher AMTexemption.
