Number: RS22200
Title: The Potential Distributional Effects of the Alternative Minimum Tax
Authors: Steven Maguire, Government and Finance Division 
Abstract: Temporary increases in the AMT exemption and provisions which allow taxpayers to apply nonrefundable tax credits against their AMT liabilities expired at the end of 2007. Certain taxpayers will be more adversely affected than others. In general, married taxpayers filing joint returns will be more adversely affected than single taxpayers. In addition, taxpayers with large families will be more adversely affected than taxpayers with small families. In terms of income, the largest increase in taxpayers subject to the AMT will occur over adjusted gross income (AGI) ranges of $100,000 to $500,000. Taxpayers with AGIs between $50,000 and $100,000 will eventually be affected, with the negative effects of the AMT growing substantially over time. Taxpayers with AGIs above $500,000 will not be significantly affected by the expiration of the higher AMT exemption.
Pages: 6
Date: February 15, 2008