Avoid the Alternative Minimum TaxBut the tax was not permanently indexed for inflation until 2013, and it had become a de facto "flat tax" for upper-middle income taxpayers. The 20 I 7 Tax Cuts and Jobs Act raised the threshold for qualifying but did not remove the AMT entirely. The AMT system starts with regular taxable income then adds "preference items." Alternative minimum tax ("AMT") is a parallel tax designed to prevent "the rich" from using regular deductions to avoid tax entirely. In 2009, it hit 4.5 million taxpayers nationwide, primarily in states with high income and property taxes.
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