Tax Cut and Jobs Act (TCJA) | Alternative Minimum Tax | Tax Attorney Lexington, KY

Higher Exemptions for Alternative Minimum Tax (AMT)

The Tax Cut and Jobs Act (TCJA) modified the the Alternative Minimum Tax (AMT) exemption.

The AMT was created almost 50 years ago to prevent the very rich from taking so many deductions that they paid no income taxes. It requires high-income earners to run their numbers twice (under regular tax rules and under the stricter AMT rules) and pay the higher amount in taxes.

Since the AMT wasn’t tied to inflation, it has gradually been affecting a growing number of middle-class earners. The new tax law reduces the number of filers who would be affected by the AMT by increasing the current income exemption levels for individuals from $54,300 to $70,300 and for married couples from $84,500 to $109,400.

For more information about the TCJA’s provisions, visit our main informational page here. For help with your tax questions or concerns, call Gayheart and Campbell, PLLC at 859-276-6193 or request a consultation here.