Bloomberg News
Right after the holiday season comes tax season. So to help you with your year-end tax planning, Kiplinger is offering a new calculator to help you determine if you will fall prey to the dreaded alternative minimum tax.
The A.M.T. was originally created to make sure the wealthiest Americans paid at least some income tax. But because it has never been indexed to account for inflation, it now snags many middle-class taxpayers.
To use the calculator, you’ll need a few pieces of information:
- What you expect your 2011 taxable income will be (you can use line 43 from last year’s 1040 if you had no significant changes this year).
- The number of exemptions you will claim for yourself and your dependents.
- Whether you choose the standard deduction, or itemize deductions.
- If you itemize, you will also need to know roughly how much you paid in real estate taxes and state income taxes (or state sales taxes) that you normally deduct on your tax return.
Plug in those numbers—and let us know in the comments if you found the calculator helpful.
Article source: http://feeds.nytimes.com/click.phdo?i=3661615582517843112dea042180ac49
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