Thursday, November 11, 2010

AMT Patch

For 2010 the AMT exemptions have reduced to the following amounts: $33,750 for unmarried individuals, $45,000 for married couples filing jointly and $22,500 for married individuals filing separately.  In 2009 these amounts were $46,700, 70,950 and 35,475 respectively.  The 2009 amounts were as a result of Congress enacting an "AMT Patch" as they have done in previous years.

On Nov. 9, Senate Finance Committee Chair Max Baucus and House Ways and Means Committee Chair Sander Levin, both Democrats, along with the ranking Republican members of those committees, Chuck Grassley and Dave Camp wrote to Douglas Shulman, the Commissioner of Internal Revenue, assuring him that there will be another "AMT Patch" enacted for 2010.  Their letter sets forth the following AMT exemptions for 2010: $47,450 for unmarried individuals, $72,450 for married couples filing jointly and $36,225 for married individuals filing separately.

Their letter also stated that personal credits will be allowed to offset the AMT in 2010.

Depending upon when this legislation is enacted it may affect the issuance of the 2010 Form 1040 and the date upon which electronic filing may begin.