April 17, 2012 9:55 AM Subscribe
Estimating tax payments for 2012. According to the 1040-ES instructions
, the exemption for the alternative minimum tax (for married people) is only $45k, down from $75k in 2011. I don't itemize and will have an adjusted gross income above $45k. Do I need to budget for the AMT?
posted by anonymous to Work & Money (2 answers total) 1 user marked this as a favorite
Let's take a look at form 6251
, and guess that the only thing that'll change are the exemptions in line 29. Adjusted gross income (not taxable income, since there's no Schedule A) goes on line 1: estimate $75k. The next 26 lines of "schedule A" and "rich person trick" amounts are all zero. There is no opportunity to subtract the $12k standard deduction or $15k of exemptions for having dependents, so the alternative-minimum-taxable income is $75k. With the 2012 exemption for the alternative minimum tax, this gives $30k on line 30 to be taxed at no less than 26%.
My taxable income is in the 15% bracket. The way I read this form, though, is that a 26% bracket starts at $45k (much lower, actually, since there's no opportunity to take the standard deduction or exemptions). Am I missing something obvious or making a bad guess about how this will go next year? Or have I just discovered why I keep hearing news stories about how "soon the AMT will apply to almost everybody"?
[Anonymous because I don't want "I make $x" associated with this account for ever.]