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Posted by Taxlover on January 31, 2008, 6:52 pm
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> Seth wrote:
> [...]
>>>>> That's nothing, I have had my tax go up by adding deductions.
>>>> Presumably this was because AMT kicked in?
>>>>
>>> Yes, because of AMT.
>>
>> I don't see how. AMT computes an alternative tax, and you pay the
>> higher. (The AMT line is the excess of AMT over regular tax.) If the
>> deduction is ignored by AMT, the AMT stays the same, and the regular
>> tax drops. If the deduction is valid for AMT, they both drop.
>>
>
> I think he's referring to the increase in the AMT *excess* over regular
> taxable income, which is the only number many people notice on their
> return when they think "AMT".
>
> The AMT excess goes up to make up the difference due to the lower regular
> tax.
>
No, the year before last I had to actually remove some deductions because
they resulted in higher tax. I posted here with specifics asking if it was
real or TaxCut was crazy. The replies were that it was real. I don't
remember the details.
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