Quote:
Originally Posted by kak125
yeah i guess the married thing helps but then again we got cash back last year so i guess i find it so odd to owe this year. its just annoying when everybody i know is getting so much money back and i am scraping to pay my real estate taxes. grr!! i feel for you with paying so much in taxes. that sucks. what is AMT if you dont mind me asking?
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To be honest, I still don't quite understand Alternative Minimum Tax (AMT). You can read about it, but it's all gibberish to me:
http://en.wikipedia.org/wiki/Alternative_minimum_tax
In a nutshell, it used to be a way to make sure "rich" people don't itemize their way out of paying income tax. However, the threshold for AMT was set a very, very long time ago when nominal income was much lower and is now totally out of sync with the times; "middle class" people are starting to get hit with it. I had to pay for an additional worksheet plus paying some amount in addition to my customary returns. Good grief!