The AMT: Permanent “patch” provides relief, but not full protection

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Abstract: While the alternative minimum tax (AMT) initially was implemented to prevent wealthy Americans from claiming so many tax breaks that they owed little or no tax, it has steadily hit more middle and upper middle class taxpayers. Minimizing this effect has historically required Congressional action for inflation adjustments, referred to as “patches.” This article points out that, even though Congress has now made the patch permanent, there are still ways that the tax can be triggered. But strategies are available for minimizing AMT liability or even taking advantage of the AMT’s lower rates.