Many important tax changes go into effect in 2010. The changes are usually the result of various laws, regulations and other guidance issued over the past few years. The AMT exemption tax law change for 2010 for individuals should be a major concern for most.
The alternative minimum tax (AMT) will hit many more taxpayers in 2010. The AMT exemption amount for 2010 is $33,750 ($45,000 if married filing jointly or a qualifying widow(er); $22,500 if married filing separately). The AMT exemption amount for 2009 was $46,700 ($70,950 if married filing jointly or a qualifying widow(er), $35,475 if married filing separately). The additional exemption amount usually results in tax savings of $1,200 to $3,300 in federal income taxes.
Many experts believe Congress will deal with the AMT problem either through another one-year patch, as it has several times before, or by revising the AMT in the context of an overall tax reform bill. In 2008, the AMT patch wasn't passed by Congress until late December. Let's hope they don't wait as long this year.
I would not expect any miracles until after the health care reform bill is reconciled.
(This article contains the current opinions of the author but not necessarily those of Brighton Securities Corp. The author's opinions are subject to change without notice. This blog post is for informational purposes only. Forecasts, estimates, and certain information contained herein should not be considered as investment advice or a recommendation of any particular security, strategy or investment product. References to specific securities and their issuers are for illustrative purposes only and are not intended and should not be interpreted as recommendations to purchase or sell such securities).