Tax Tips From Tony Navarro

Tuesday, March 30th, 2010 at 8:00 am

This is the fifth of 7 tips on tax preparation from Tony. Check back each Tuesday to read them all.

Tip Number Five: Alternative Minimum Tax (AMT) • The AMT for 2009: • Applies to high income taxpayers who claim so many deductions they owe little or no tax; • Isn’t indexed for inflation, so it covers growing numbers of the middle class; • May apply if your taxable income, adjustments and preference items are more than the AMT exemption; • Exemption amounts are set by law – they are; • Married couples filing jointly and qualifying widows and widowers – $70,950; • Singles and heads of household – $46,700; • Married people filing separately - $35,475; • Minimum exemption for children whose unearned income is taxed at the parents’ tax rate is $6,700; • Tax deductions for state/local sales/excise taxes on new motor vehicle purchases qualify as AMT deductions.

Tony Navarro, UCLA, B.A, Economics, 1990: Investment Consultant since 1992; Tax Preparation since 1996 tax year; IRS Audit Representation; IRS-designated Enrolled Agent; Investment Advisor LPL; Notary Public; Bookkeeping Services. 12803 Venice Boulevard • Mar Vista, CA 90066 (310) 398-3231 • tony@taxplusla.com http://www.taxplusla.com