Why Are Middle-Class Folks Being Hit with the AMT?
In 1987, one year after the last major overhaul of the Alternative Minimum Tax system, only one tenth of one percent of all returns had to pay the Alternative Minimum Tax. Today, the Alternative Minimum Tax is no longer just for high-income individuals. Now, many middle-income Americans are paying the Alternative Minimum Tax or having their tax credits limited by its hidden effects. The Treasury Department expects that more and more people will be paying the AMT over the next few years.
