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tauld1
New Member

My wife and I were hit with an AMT this year that meant we owed federal taxes. Our income will rise in 2017 and beyond. How can we avoid the AMT?

 
1 Reply
MichaelL1
Level 15

My wife and I were hit with an AMT this year that meant we owed federal taxes. Our income will rise in 2017 and beyond. How can we avoid the AMT?

Normally very little you can do to avoid it.  Take a look at the tax preference items for 2016 return, and see if these will reoccur in 2017.  

It is a double edge sword, as those items lower your regular tax and cause AMT to kick in.  If they were removed your regular tax would go up.

Here are a few of articles that may help.

https://www.fidelity.com/viewpoints/personal-finance/alternative-minimum-tax

https://turbotax.intuit.com/tax-tools/tax-tips/IRS-Tax-Return/Alternative-Minimum-Tax--Common-Questi...

http://www.wikihow.com/Avoid-AMT

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