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On December 26, 2007, President Bush signed into law the
"Tax Increase Prevention Act of 2007
(H.R. 3996)." This new law extends the increased
alternative minimum tax (AMT) amounts for tax year 2007. Without the
passing of this Act, it was estimated that 25 million taxpayers would
have to pay on average an additional $2,000 in taxes for tax year 2007
because of AMT.
The AMT exemption amounts for 2007 are:
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$44,350 for taxpayers who are single or
head of household;
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$66,250 for taxpayers who are married
filing jointly; and
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$33,125 for taxpayers who married filing
separately.
For tax year 2007, the new law allows
taxpayers to use most nonrefundable personal credits to offset AMT
liability. Some examples are the child and dependent care credit, child
tax credit, Hope and Lifetime Learning education credits,
adoption credit, retirement contribution credit, and the District of
Columbia first-time homebuyer credit.
View the Entire Act (Tax Bill)
Passed By U.S. Congress
Download File
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