193385 Resource 178438 178984 178982 1198880512435 1198949103662 Controlled Alternative Minimum Tax Relief Passed by Congress

Many Taxpayers with mortgage interest credit will have to wait for their return this year.

After much drama and a few rounds of chicken between the House and Senate, Congress FINALLY passed AMT relief on Wednesday, December 19.  The President has indicated a strong willingness to sign this bill into law, and it is currently awaiting his signature.  Under this one year patch, approximately. 20 million taxpayers have escaped the clutches of the Alternative Minimum Tax.  However, approximately 3.5 million taxpayers are still expected to be subject to the AMT.The IRS expects to be able to begin processing returns for the vast majority of taxpayers in mid-January.  However, because of the late passage of the AMT, as many as 13.5 million taxpayers using five forms related to the Alternative Minimum Tax legislation will have to wait to file tax returns until the IRS completes the reprogramming of its systems for the new law.  IRS has targeted February 11, as the potential starting date for taxpayers to begin submitting the five-related returns affected by the legislation.  Returns that include the following forms cannot be filed until Feb. 11, 2008:   .  Form 8863, Education Credits   .  Form 5695, Residential Energy Credits   .  Schedule 2, Form 1040A, Child and Dependent Care Expenses for Form 1040A Filers   . Form 8396, Mortgage Interest Credit   .  Form 8859, District of Columbia First-Time Homebuyer CreditWhat is AMT?  The AMT came into being with the Tax Reform Act of 1969.  Its purpose was to target a small number of high-income taxpayers who could claim so many deductions they owed little or no income tax.  Due to rising middle-class incomes, a growing number of middle-income taxpayers are discovering they are subject to the AMT.  Please refer to <a href="http://www.irs.gov/">www.irs.gov</a> for additional information on the AMT and if you will be affected. 10 application/xml false Alternative minimum tax AMT IRS Mozilla/4.0 (compatible; MSIE 7.0; Windows NT 5.1; .NET CLR 1.1.4322; .NET CLR 2.0.50727) 127.0.0.1 127.0.0.1 aheitland 24.121.32.9 false true false false true 178975 false false true false false false true 178438 blog blogsite/BestFlagstaffHomes/web