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Congress passes AMT patch
12-19-2007, 06:37 PM
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#1
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Thinks s/he gets paid by the post
Join Date: Aug 2006
Posts: 2,433
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Congress passes AMT patch
Today, Congress passed an AMT patch for tax year 2007. The patch is an increase in the exemption amount to $66,250 ($44,350) for joint (single) filers. In 2006 the exemption amount was $62,550 ($42,250) for joint (single) filers. Without the patch the exemption amount would have reverted to $45,000 ($33,750) for joint (single) filers.
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12-19-2007, 07:28 PM
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#2
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Moderator Emeritus
Join Date: Jan 2007
Location: New Orleans
Posts: 47,472
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Quote:
Originally Posted by FIRE'd@51
Today, Congress passed an AMT patch for tax year 2007. The patch is an increase in the exemption amount to $66,250 ($44,350) for joint (single) filers. In 2006 the exemption amount was $62,550 ($42,250) for joint (single) filers. Without the patch the exemption amount would have reverted to $45,000 ($33,750) for joint (single) filers.
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I guess that's better than nothing. If AMT is just supposed to be for the "fat cat" contingent, it would have made more sense to patch it with $200K($150K) for joint(single) filers. But I guess we should be glad to get anything out of them.
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Happily retired since 2009, at age 61. Best years of my life by far!
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12-20-2007, 07:43 AM
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#3
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Sep 2005
Location: Northern IL
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Are there any numbers available on how much this will reduce the income tax revenue for tax year 2007?
-ERD50
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12-20-2007, 07:51 AM
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#4
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Thinks s/he gets paid by the post
Join Date: Jan 2007
Location: Silicon Valley
Posts: 1,812
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I'm ecstatic that this has finally been passed because I hope to save $4-5k by not having to pay the AMT.
HR Block have a good calculator which tells you what your taxes are. However it has not yet been updated to take into account this change.
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I be a girl, he's a boy. Think I maybe FIRED since July 08. Mid 40s, no kidlets. Actually am totally clueless as to what is going on with DH.
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12-20-2007, 07:52 AM
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#5
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2002
Location: Texas: No Country for Old Men
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Quote:
Originally Posted by DangerMouse
HR Block have a good calculator which tells you what your taxes are. However it has not yet been updated to take into account this change.
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Can you provide us a link?
Thanks...
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Numbers is hard
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12-20-2007, 07:52 AM
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#6
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jan 2006
Location: Rio Grande Valley
Posts: 38,006
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Looks like they just fixed the "patch" to be the same as last year?
Audrey
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12-20-2007, 07:56 AM
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#7
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Recycles dryer sheets
Join Date: Apr 2007
Location: Sebring
Posts: 203
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I wonder how many of our tax dollars went into that patch, which, from the looks of it, they will need to visit again each year. At least they got it in before the April 15 deadline so we can do our taxes.
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12-20-2007, 08:23 AM
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#8
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2002
Location: Texas: No Country for Old Men
Posts: 50,004
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Last year H&R Block released a free version of 2006 TaxCut software in late November.
H&R Block TaxCut Basic - Reviews and free H&R Block TaxCut Basic downloads at Download.com
I've been unable to find a 2007 release and wonder if Block isn't giving out a free version this year or if the delay by our esteemed representatives in Washington has held things up.
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Numbers is hard
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12-20-2007, 09:28 AM
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#9
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Thinks s/he gets paid by the post
Join Date: Jun 2006
Location: Central, Ohio, USA
Posts: 2,635
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Go to TAX ACT and get their 2007 free advance version (final copy will also be free).
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Vietnam Veteran, CW4 USA, Retired 1979
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12-20-2007, 09:38 AM
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#10
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Recycles dryer sheets
Join Date: Nov 2007
Location: Denver
Posts: 170
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Yeeeck, I think I need to look up info on the AMT, I had no idea we had been skirting just under...
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12-20-2007, 09:50 AM
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#11
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2002
Location: Texas: No Country for Old Men
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Quote:
Originally Posted by R Wood
Go to TAX ACT and get their 2007 free advance version (final copy will also be free).
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Thanks, I've already downloaded TaxAct. I was hoping for TaxCut since I've been using it for years and want to use the auto transfer of information feature so I won't have to reenter a bunch of basic stuff.
Heaven forbid, I might have to shell out $20 and actually buy a copy...
__________________
Numbers is hard
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12-20-2007, 09:56 AM
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#12
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Thinks s/he gets paid by the post
Join Date: Aug 2006
Posts: 2,433
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Quote:
Originally Posted by ERD50
Are there any numbers available on how much this will reduce the income tax revenue for tax year 2007?
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approximately $50 billion
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12-20-2007, 02:59 PM
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#13
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Sep 2005
Location: Northern IL
Posts: 26,819
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Quote:
Originally Posted by FIRE'd@51
approximately $50 billion
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Thanks, I also see that they didn't raise taxes anywhere else, so this is not revenue neutral.
-ERD50
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12-20-2007, 03:33 PM
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#14
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Recycles dryer sheets
Join Date: Nov 2005
Posts: 337
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Quote:
Originally Posted by ERD50
Thanks, I also see that they didn't raise taxes anywhere else, so this is not revenue neutral.
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Reportedly, they could find 60 senators who wanted to "patch" the AMT, but they could not get 60 senators to agree on where to raise taxes or cut spending to keep it revenue neutral.
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12-20-2007, 04:10 PM
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#15
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Recycles dryer sheets
Join Date: Jun 2005
Posts: 297
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Quote:
The Washington Post the Senate twice rejected a House-passed AMT patch that would have been paid for by closing down offshore tax havens or by increasing the tax rate on managers of hedge funds and private-equity firms.
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The republicans in the Senate blocked the revenue neutral part of this after the House passed it. They are beholden to the .01 percenters who don't have many votes between them, but considering their campaign contributions, I guess their votes are worth much much more than yours and mine.
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12-20-2007, 04:22 PM
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#16
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Thinks s/he gets paid by the post
Join Date: Aug 2006
Posts: 2,433
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Quote:
Originally Posted by igsoy
The republicans in the Senate blocked the revenue neutral part of this after the House passed it.
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IIRC, the Senate version passed 88-5, so many Dems went along with it. Interestingly, both Hillary Clinton and Charles Shumer opposed the taxation of "carried interest" as ordinary income rather than capital gains. Do you suppose maybe that had something to do with campaign contributions?
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12-20-2007, 05:56 PM
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#17
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Thinks s/he gets paid by the post
Join Date: Oct 2006
Location: North-Central Illinois
Posts: 3,228
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Quote:
Originally Posted by REWahoo
Thanks, I've already downloaded TaxAct. I was hoping for TaxCut since I've been using it for years and want to use the auto transfer of information feature so I won't have to reenter a bunch of basic stuff.
Heaven forbid, I might have to shell out $20 and actually buy a copy...
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My Mom received "TaxCut Premium" in the mail last week. It says it's the exact same software that you have to pay for to purchase online. One of the FAQ's was "Why did we receive this in the mail?" There answer was basically 'Because we wanted to make things easy for you."
Mom doesn't do her own taxes, so that isn't how she got on their mailing list for the free CD. I used TC last year, but I didn't get the free CD.....from them....but I have it now!
You might ask friends or neighbors if they got it in the mail, and see if they want to get rid of it.
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12-20-2007, 06:15 PM
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#18
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Recycles dryer sheets
Join Date: Jun 2005
Posts: 297
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Quote:
Originally Posted by FIRE'd@51
IIRC, the Senate version passed 88-5, so many Dems went along with it. Interestingly, both Hillary Clinton and Charles Shumer opposed the taxation of "carried interest" as ordinary income rather than capital gains. Do you suppose maybe that had something to do with campaign contributions?
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Of course it did, that is an example of why many Democratic Party voters don't support her in the primaries. There are candidates in the field who will represent them better.
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12-20-2007, 08:57 PM
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#19
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Thinks s/he gets paid by the post
Join Date: Jan 2007
Location: Silicon Valley
Posts: 1,812
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Quote:
Originally Posted by igsoy
The republicans in the Senate blocked the revenue neutral part of this after the House passed it. They are beholden to the .01 percenters who don't have many votes between them, but considering their campaign contributions, I guess their votes are worth much much more than yours and mine.
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You seem to forget that many of us ordinary tax payers are caught in AMT hell. We are certainly not incredibly wealthy, we do ok by many standards. However, AMT triggered for us even though we have no deductions besides donations to charity and state tax. We have no dependents and I think our contributions for Federal tax before adding in the AMT was more than sufficient. We live in a State (Ca.) which requires high incomes just to get by.
__________________
I be a girl, he's a boy. Think I maybe FIRED since July 08. Mid 40s, no kidlets. Actually am totally clueless as to what is going on with DH.
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12-20-2007, 09:25 PM
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#20
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Mar 2005
Location: Chicago
Posts: 13,151
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Quote:
Originally Posted by bamsphd
Reportedly, they could find 60 senators who wanted to "patch" the AMT, but they could not get 60 senators to agree on where to raise taxes or cut spending to keep it revenue neutral.
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Hmmmm...... Aren't there almost 60 Dem senators now? Wouldn't this have just taken onesy - twosy GOP senators joining in? Seems strange.
Edit: Oooops....what was I thinking? Actually its:
110th Congress (2007-2009)
Majority Party: Democrat (49 seats)
Minority Party: Republican (49 seats)
Other Parties: 1Independent; 1 Independent Democrat
Total Seats: 100
So I guess the Dems would have had to go get the two independents and 9 GOP senators to pass the provision making it revenue neutral.
Anyone know where I can go look at the actual votes by senator? This should have been made revenue neutral and any Dems that didn't back the revenue neutral provision should, of course, be skinned alive.
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