AMTs' Pinch Is Present

Publication
Article
Physician's Money DigestJanuary15 2004
Volume 11
Issue 1

Once aimed at wealthy taxpayerswho use many deductions to lower oreliminate their tax liability, the AlternativeMinimum Tax (AMT) is nowstarting to afflict the middle class(which includes many doctors). Thisyear, 2.4 million taxpayers will get hitwith the AMT, but because the AMT'sincome brackets aren't indexed forinflation and because regular tax rateshave dropped, more taxpayers will fallinto the AMT snare each year. By2010, about one third of the nation'staxpaying population and just abouteveryone who earns more than$100,000 will have to deal with theAMT. Those who are most likely to gethit by the AMT are upper-income taxpayerswith many of the types of writeoffsthat the AMT doesn't allow (eg,property taxes, personal exemptions,and home equity loan interest).

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