Since the AMT thresholds are not updated in line with inflation it takes congress to increase the amounts.
For tax-year 2011, the alternative minimum tax exemption increases to the following levels:
- $74,450 for a married couple filing a joint return and qualifying widows and widowers, up from $72,450 in 2010.
- $37,225 for a married person filing separately, up from $36,225.
- $48,450 for singles and heads of household, up from $47,450.
Will the Alternative Minimum Tax apply to me?
The honest answer to that question is we do not know, until you sit down with a tax prep company who can look through your forms there is no way of knowing whether the AMT will be your best way to file taxes or not.
Obviously if you are earning less than the figures mentioned here you will not need to worry about the AMT.