AMT - Alternative Minimum Tax 2007-2008

On December 26, 2007, President Bush signed the "Tax
Increase Prevention Act of 2007," providing a one-year
"patch" to the alternative minimum tax (AMT).

Without this legislation, an estimated 25 million
taxpayers would have had to pay an average of $2,000
in additional taxes for 2007.

The new law increases the 2007 AMT exemption amount to
$66,250 for joint filers, to $33,125 for couples filing
separately, and to $44,350 for single taxpayers and
heads of household. Most nonrefundable personal tax
credits will be allowed to offset AMT liability.

As a result of the late passage of this law, taxpayers
using five forms related to the AMT will have to wait
to file tax returns until the IRS computers are
reprogrammed for the changes. The five affected forms
include:

* Form 8863: Education Credits

* Form 5695: Residential Energy Credits

* Form 1040A's Schedule 2: Child and Dependent Care
Expenses for Form 1040A Filers

* Form 8396: Mortgage Interest Credit

* Form 8859: District of Columbia First-Time Homebuyer
Credit

The IRS has set February 11, 2008, as the expected
starting date for processing returns involving these
forms. Processing of other returns is expected to begin
in mid-January.

I hope you find this information useful.

Mike Habib, EA

MyIRSTaxRelief.com