Sentences with phrase «alternative minimum»

If you're a taxpayer worried about Congress not extending the Bush tax cuts by Jan. 1, brace yourself: An even bigger hit — the Alternative Minimum Tax — might be waiting for you on New Year's Day.

The S&P Municipal Yield Index is designed to measure the performance of high yield municipal bonds issued by U.S. states, The District of Columbia, U.S. territories and local governments or agencies, such that interest on the securities is exempt from regular federal income tax, but may be subject to the alternative minimum tax and to state and local income taxes.

However, in some cases, the alternative minimum tax (AMT) may apply to taxpayers who rely on income from municipal bonds.

See more news and features in these categories: Alternative Minimum Tax (AMT), Equity Compensation, Incentive Stock Options (ISOs)

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Income from municipal securities may be subject to state, local, and / or capital gains taxes, as well as the alternative minimum tax (AMT).

Note, however, that alternative minimum tax (see topic 157) may apply — in particular, on the receipt of eligible dividends.

debt obligations of the U.S. Government with maturities of 10 years or longer; coupon interest for Treasury bonds is exempt from state and local taxes, but is federally taxable; interest income may also be subject to alternative minimum tax

interest from municipal bonds as well as distributions from mutual funds that qualify as exempt interest dividends; this income is generally not subject to regular federal income taxes; note that Fidelity reports this information to the IRS, and may be required to report the information to tax authorities in California among other states; the total amount or a portion of tax - exempt income (reported as specified private activity bond interest) must be taken into account when computing the federal Alternative Minimum Tax (AMT) applicable to individuals and may be subject to state and local taxes; you are required to report tax - exempt income on Form 1040, and may be required to report it on your state tax return as well

All or a portion of the fund's income may be subject to the federal alternative minimum tax.

If your regular tax liability falls below the AMT amount, you will have to pay the difference as additional Alternative Minimum Tax.

Box 11 is the portion of Box 10 that qualifies as specified private activity bond interest dividends, which shows the amount subject to the Alternative Minimum Tax.

This benefit could be reduced even further if the taxpayer was subject to the alternative minimum tax (AMT).

IRS statistics indicate that two items are far more important than any others in causing people to pay alternative minimum tax.

If you have to pay AMT in the year of the sale, this adjustment will reduce your alternative minimum tax liability.

If you invest in bonds that aren't exempt under the alternative minimum tax, you'll see an entry for this item on Form 1099 - INT.

This page provides a list of items that can cause (or contribute to) liability under the alternative minimum tax.

The reasons are a little complicated, but mainly have to do with the fact that a large capital gain reduces or eliminates the AMT exemption amount, which is designed to protect low - income taxpayers from having to pay alternative minimum tax.

Even if you don't usually pay alternative minimum tax, a large long - term capital gain can result in AMT liability.

Some assets have a different basis under the alternative minimum tax (AMT) than under the regular tax.

When we talk about the tax due, we mean the total amount of tax you owe — including the dreaded alternative minimum tax (AMT).

Invest in high - quality, short - term municipal money market securities that are typically exempt from federal income taxes, and in some cases the alternative minimum tax.

For investors subject to the alternative minimum tax, a portion of fund dividends may be taxable.

Some of the things that cause an adjustment in basis under the regular tax have a different treatment under the alternative minimum tax.

As a result you may end up paying alternative minimum tax.

If you borrowed against your home for some other purpose, the interest deduction isn't allowed under the alternative minimum tax.

The income from these bonds is generally free from federal taxes, although a portion may be subject to state and local taxes, as well as the federal alternative minimum tax (AMT).

If you live in a place where state and local taxes are high, you're more likely to be subject to the alternative minimum tax.

In theory, they shouldn't cause you to pay alternative minimum tax.

Most people have at least a little bit of a cushion between the amount of regular tax they pay and the level where they would have to start paying alternative minimum tax.

The Alternative Minimum Tax (AMT) exemption is finally tied to the inflation index.

There's no reason to believe Congress intended the alternative minimum tax to apply merely because you have a long - term capital gain.

Can HSA tax deductions help when it comes to the alternative minimum tax?

If you claim an itemized deduction for medical expenses, part or all of it may be disallowed when you calculate your alternative minimum tax.

If you don't have to pay alternative minimum tax in the year of the sale, the adjustment may make it possible to claim a larger portion of your AMT credit in that year.

In our particular case we didn't benefit from mortgage interest deductions anyway because of the Alternative Minimum Tax (AMT).

In addition to altering the tax brackets, the Tax Reform Act of 1986 eliminated certain tax shelters: It required people claiming children as dependents to provide Social Security numbers for each child on their tax returns, it expanded the Alternative Minimum Tax and increased the Home Mortgage Interest Deduction to incentivize homeownership.

The act also simplified rules relating to qualifying retirement plans and increased the personal tax exemption amount of the «alternative minimum tax».

But if your regular tax falls below this minimum, you have to make up the difference by paying alternative minimum tax.

For example, your income or deductions might cause the Alternative Minimum Tax (AMT) to take affect, or your earnings beyond a certain level may cause the Social Security portion of your FICA tax to drop off.

When you exercised your ISO you had to report an AMT adjustment that may have required you to pay alternative minimum tax.

The first thing to understand about the alternative minimum tax (or AMT) is an additional tax some people have to pay, on top of the regular income tax.

The best way to understand alternative minimum tax liability is to see how it's calculated.

Another advantage is that many above - the - line deductions are allowed under the alternative minimum tax, or AMT.

A diversified, credit — focused approach to municipal bond investing — without exposure to the Alternative Minimum Tax.

Since this is a separate and complete tax, my understanding at this point is that the new tax will have no impact whatsoever on the alternative minimum tax (AMT), although we will have to wait to see how the IRS forms are prepared.

The Act specifically raises the exemption and phase out levels for the Alternative Minimum Tax, which is typically levied on individuals earning income above a certain threshold.

SAI does not actively manage for alternative minimum taxes; state or local taxes; foreign taxes on non-U.S. investments; or estate, gift, or generation - skipping transfer taxes.

* - A note for the tax pros and other readers who are sticklers for details: this formula is highly simplified and leaves out certain things such as self - employment tax and alternative minimum tax on purpose

This is the amount in Box 8 which is subject to the Alternative Minimum Tax.