I have never had to pay AMt before, but with the changes in code this year, I am slightly concerned...
What type of factors increase your likelyhood of being affected by AMT?
Certain Types of income vs others? Wages vs Interest vs Capital Gains?
Certain threshholds of income? AKA MJ>100K?
Certain Types or levels of Deductions?
Last year our Joint AGI was just over 100K by a few hundred dollars (100% of this is W2 wages and Taxable interest from checking/savings accounts), post deductions and exemptions, we had about 74K in taxable income....However this year, I put in over 15,000 in overtime, and Im wondering what other factors might move us closer to having to pay AMT.
Well, the good news is that with the tax compromise earlier this week, they put in a new patch for AMT. AMT exemption for married couple will be $78,750, so based on your expected income ($115K) I would be surprised if you get hit by it.
But, for sake of your question, trying to boil down impact of AMT is very difficult without actually filling out the form 6251. As simple as I can make it, take your taxable income before exemptions but after standard/itemized deductions (Line 41 on your 1040) and add to that any medical deductions, property/state income/state sales tax deductions, and mortgage interest adjustment (this is calculated on another form) (there are a ton of other additions, but you probably aren't impacted by them) to come up with your AMT income. Then subtract the AMT exemption. Any difference you multiple by 26%. This is your Tentative Minimum Tax. Now, compare this amount to your 1040A calculated tax (line 44). If the Tentative Tax is higher, then you owe the difference as AMT tax. If it's lower, then you owe nothing more.
See how easy that was :awe:
I can tell you that we make more than you, but we will not be impacted by AMT for 2012. So, I would be very surprised if you did, as long as you weren't grossly under-withholding for the year.