2006 Tax Law Changes - Alternative Minimum Tax (AMT)

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Exemption amount for a child

The minimum exemption amount for a child under age 14 increased to $6,050 for 2006.

At the time this publication went to print, Congress was considering legislation that would eliminate the following changes.

Certain credits no longer allowed against the AMT

The credit for child and dependent care expenses, credit for the elderly or the disabled, education credits, mortgage interest credit, and carryforwards of the District of Columbia first-time homebuyer credit are no longer allowed against the AMT, and a new tax liability limit applies. This limit is your regular tax minus any tentative minimum tax (figured without any AMT foreign tax credit).

AMT exemption amount decreased

The AMT exemption amount has decreased to $33,750 ($45,000 if married filing jointly or qualifying widow(er); $22,500 if married filing separately).

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