Thursday, March 27, 2014

Will the Alternative Minimum Tax Affect You?

Some people are really good at dodging high taxes. These people, who often earn higher than average salaries, can sometimes get away with paying next to nothing in taxes due to smart deductions made by their accountants. In order to prevent wealthy earners from not paying any taxes, the alternative minimum tax was created. Individuals who fall within certain income brackets and who meet other qualifications must pay the alternative minimum tax under certain circumstances.


In recent years, however, more and more moderate earners, not just high earners, have been forced to pay the Alternative Minimum Tax due to the fact that the tax and its qualifications were not adjusted to reflect inflation. All of that changed last year, however, due to recent “patch” that stops middle earners form having to pay the tax.


You can find out if, based on your income, you are required to pay the alternative minimum tax this year. The best way to do so is to contact qualified accountants in Naperville, such as those at Susan S. Lewis, Ltd.

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