Free Republic

**SNIP** What happened? Inflation, mostly. While the “regular” tax brackets, exemptions and standard deductions were adjusted annually for inflation, the AMT brackets and exemptions were not, so many people whose income increased entered the dreaded AMT zone. Especially vulnerable are people with income over $75,000 and some large deductions, but not the exotic ones that were originally targeted by the AMT’s creators. Most vulnerable are taxpayers with several children, interest deductions from second mortgages, capital gains, high state and local taxes, and incentive stock options. Thankfully, the AMT brackets and exemptions are adjusted for inflation for 2013 and beyond, which...

Taxpayers probably won't have a clear idea of their 2012 tax obligations until the last minute this year — and possibly not even then. They could find themselves owing several thousand dollars in income tax that they didn't plan for and may not be able to afford.