Middle Class Could Be Hit Again by AMT

Middle Class Could Be Hit Again by AMT
Shutterstock
Anne Johnson
Updated:
0:00
The alternative minimum tax (AMT) runs parallel to the regular tax system. Although part of the federal tax system, it has a different rate structure. The AMT also eliminates some common tax breaks. It was implemented to keep wealthy taxpayers from finding loopholes to pay less taxes.
Unfortunately, at one time, the middle class was also affected by the AMT. Could that happen again? How does the AMT work?

Why Have the AMT?

In 1969, the AMT was enacted to keep wealthy taxpayers from taking too many deductions to lower or eliminate their taxes. 
Anne Johnson
Anne Johnson
Author
Anne Johnson was a commercial property & casualty insurance agent for nine years. She was also licensed in health and life insurance. Anne went on to own an advertising agency where she worked with businesses. She has been writing about personal finance for ten years.
Related Topics