Standard Versus Itemized Deductions

Married no matter how you file $1,350 per person  Single or head of household $1,700 per person   There is also an amount for dependents of the greater of $1,100 or earned income plus $350.   Itemized deductions Itemized deductions are all of the deductions allowed in the tax code (which I go through below).  You can…

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What is the AMT and How Does It Work?

What is the Alternative Minimum Tax (AMT)? Congress initially enacted The Alternative Minimum Tax (AMT) to ensure that high-income taxpayers pay a minimum amount of tax.  It passed in 1969 in response to a report that high earners (the equivalent of $1.17 million a year in 2020) were not paying any tax at all.  The AMT…

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