Are you ready for the Alternative Minimum Tax (AMT)? This is the biggie in the “fiscal cliff” that looms ahead.
It will it affect close to 27 million families. They are unaware of it. They have not budgeted for it.
Yes, the coming financial hit applies to this tax year. Even if the new, incoming Congress applies an AMT patch after January, experts say it will be an accounting nightmare. It’s difficult to undo the tax once the filing season has begun in January, and at the least, it would result in long processing delays of all returns.
If Congress decides to revoke it before January 1, the IRS will have to re-program its computers. Americans will not get their tax refunds early. They will have to wait an extra two months for the refunds they count on.
The AMT will eat up next year’s tax refund — and then some. Surprise!