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$2200 in AMT??

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rated:
can someone sanity check my AMT amount? every year we get hammered with more and more AMT. I know some of you have your own spreadsheets that compute all this stuff. here's the particulars:
married filing jointly.
2 kids.
total AGI: 274,879
itemized deductions: 43,554
exemptions: 16,200
taxable income: 215,115
tax: 47,206
AMT: 2,240
additional medicare: 420
Total Tax: 49,666

is this right?

 

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rated:
could you break out itemized deductions? state taxes is a preference item for AMT.

rated:
How much do you deduct for taxes versus mortgage interest?

rated:
here's the itemized deductions:
state taxes: 10,101
property tax: 10,665
mortgage interest: 13,810
cash contributions: 4,175
non cash contributions: 4,803

I think that's it.

rated:
ARe you missing some other deductions or credits of any kind?

Using the figures you gave on this calculator :
https://turbotax.intuit.com/tax-tools/calculators/taxcaster/

Comes out to AMT of $2717

rated:
looks like there's a $200 credit for dependent care expenses. but you're saying the AMT should be $500 more... I was hoping for much less, but I guess i'll take what tax act is giving me.

rated:
seems in the ballpark.....Taxcaster got (assuming all ordinary income since no detail provided)     Regular Tax =47221; AMT=2717 ; Other Tax:223    

rated:
It sucks but it sounds about right. You are in the crush spot for the AMT. Since they only just started adjusting for inflation, the AMT if tending to hit the people in your income  ($200K) more and more, particularly if you have kids or live in a high tax state.

rated:
It's bad enough that they kill you with the AMT. The proverbial nail on the coffin is when they charge you a penalty because you didn't withhold enough (when it was the AMT brought you below the threshold).

rated:
Welcome the the worst part of AMT. Once you cross the AMT theshold you effectively jump into the 35% marginal tax bracket.

Wait, AMT is only a 28% rate you say? Yes that's true, but each marginal dollar of taxable income reduces your AMT standard deduction by 25 cents (you get the home mortgage, charitable and medical deductions, plus a standard AMT deduction that declines by 25 cents with each incremental dollar of income). So if you make an extra dollar, you are taxed at 28% on $1.25 (35 cents on $1 of additional income).

Remember AMT is a parallel tax system, /'d the "additional AMT on your return is really the excess of the AMT system over the refiar system". All this because a bunch of millionaires paid no tax 40-50 years ago.

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OP, I didn't do any actual math on your numbers, but at a quick glance it wouldn't surprise me. If you make over $200K and have high income and property taxes in your state, you are a prime candidate for getting hit by the AMT. That's the case for me. As HighTechnology stated, you should view the AMT as an alternate/parallel tax calculation system, and the final bill you get hit with is whichever is higher. The AMT throws away those state tax deductions from your itemized taxes.

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eurekaa said:   It's bad enough that they kill you with the AMT. The proverbial nail on the coffin is when they charge you a penalty because you didn't withhold enough (when it was the AMT brought you below the threshold).
  
Never self-assess a penalty. Pay the tax due and the IRS will send you a letter if they REALLY want that penalty.

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Matr0skin said:   could you break out itemized deductions? state taxes is a preference item for AMT.
  Only $2200 with that income and itemized deduction amount?  You must live in a different city and state than me and my co worker, who both get srewed with much more than than on much less income, seemingly (through calculating the ATM of Form 6251) mostly due to state and city income tax.

rated:
Off topic, but I hope you are not really a "Sky jumper" with 2 children.

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