The Middle Class “Wealth Tax”

Man Filling out Tax FormThe Alternative Minimum Tax (AMT) was supposedly “fixed” in 2012, and yet it’s still harming many middle class families because the “wealth tax” was actually simplified or eliminated.

Figuring out whether you’re in the AMT crosshairs means calculating your tax liability twice — once under the rules of the regular income tax code, and once under the AMT rules. You must pay whichever is higher.

This year, the Tax Policy Center estimates that 953,000 of households making between $50,000 and $200,000 will have to pay the AMT. By contrast, only 118,000 households making more than $1 million will be hit.

 

Find about more about the AMT’s effect on the middle class at CNN Money.

Image courtesy of: AgriLife Today