courtesy of: David & Mary Mellem, EAs & Ashwaubenon Tax Professionals
Congress has finally agreed on an AMT patch for years beginning in 2007. President Bush has indicated he plans to sign the bill. The bill is titled the “Tax Increase Prevention Act of 2007”.
There are two parts to the bill:
1) The tax exemption amount is changed to:—- $66,250 for Married Filing Jointly taxpayers (was $62,550) —- $33,125 for Married Filing Separate taxpayers (was $31,275) —- $44,350 for all other taxpayers (was $42,500)
Note: The income limits were not changed. They remain:—- $150,000 for couples —- $75,000 for married filing separate status —- $112,500 for singles
2) The nonrefundable personal credits that offset the AMT during 2006 will continue to offset the AMT for 2007.
IRS has announced it immediately started the reprogramming as soon as the bill passed Congress. IRS hopes to minimize any delay and wants to start processing return accurately and issue refunds as quickly as possible. More information will be released by IRS as details of their plans/expectations
This “patch” is for one year only and does not have any revenue raisers. Congress is supposed to offset the cost of this patch through legislation during 2008.
The bill can be found at Thomas.loc.gov by searching by bill number HR 3996 or:
This text has been shared with you courtesy of: David
& Mary Mellem, EAs & Ashwaubenon Tax Professionals,
920-496-1065 (920-496-9111). firstname.lastname@example.org,
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HR 3996 :: Tax Increase Prevention Act of 2007
- Form 6251 – 2007 Draft :: 2007 Alternative Minimum Tax Form – BEFORE Patch changes