my sister is freaking over the alt tax minimum deal. what makes you have to pay?
by Mortgage Rates on Thursday, October 14th, 2010 | 3 Comments
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They probably have less to worry about AMT than getting audited for those itemized deductions.
The business portion of the cell phone calls is allowed.
Home improvements aren’t deductible (they add to cost of home).
On the AMT form, the 2% section is added back, but I doubt that’s enough from your description.
Congress extended the ‘patch’ for another year, so if their income and deductions stayed about the same last year as the year before, the only effect it will have this year is that it takes the IRS 7 weeks to reprogram their computers from whenever Congress quits meddling with the tax code. Therefore people with deductions for day care and tuitions won’t be able to claim those until after Feb 11th. The choices are:
1) File now leaving those off and then file an amended return after Feb 11th to include those child care and tuitions deductions.
2) Wait until after Feb 11th to file.
Those are the only choices this year. That, and write her Congressman and Senator…they are the ones who caused this mess.
The deductions you mention won’t make her subject to AMT unless her income is quite high.
Home improvements? Other than a very limited list that qualify for a residential energy credit, home improvements aren’t deductible.