Tag: Alternative Minimum Tax

Taxes And The Romney Tax Plan

Romney Tax Plan

If you are looking for information on the 2010 taxes and what the Romney tax plan is if he wins the election, maybe this will help you.

One of the things that Romney said he does not want to do is cut taxes for the well off. He said that high income taxpayers will have fewer exemptions and deductions. He said that if those numbers didn’t come down, they’d get a tax break. Romney said that he is proposing a reduction in the tax rate but that he also wants to close exemptions and deductions at the high end so that the revenues will stay the same. He also wants to lower the heavy load on the middle income people. Another thing he wants to cut individual income tax rates, reduce tax preferences, reduce the corporate income tax, eliminate the estate tax, and more. As for the taxes enacted in the 2010 health reform legislation, he wants to repeal it and the AMT.

The plan would reduce the six income tax rates so that the top rate would go down to 28 percent and the bottom rate would go down to 8 percent. The Repeal of the AMP would increase tax savings from rate cuts.

You can find more information on Romney’s tax plan if you are still confused. You can look it up online.

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Should they Abandon the Alternative Minimum Tax?

The AMT or Alternative Minimum Tax is that rare thing – a part of the tax code that most people agree on irrespective of their ideological or political leanings. It was originally established in order to make certain that the richest citizens in the US were going to be made to pay their own fair share of the national tax revenues, but most people now think that it is unfair it has not been adjusted along with inflation which in effect means that an ever growing percentage of not quite as wealthy Americans are falling within its remit and finding themselves the recipients of bigger tax bills.

In recent negotiations on the debt ceiling, one of the considerations under discussion was that Congress remove the Alternative Minimum Tax. Whether this was a bargaining chip or a genuine suggestion is uncertain but it does rile many people that a tax that was put in place to place extra tax on the rich has now ended up including 65% of all US taxpayers. How is it fair that 65% of all taxpayers are required to pay an extra tax over and above what the rate charts require? On the other hand, some people might suggest that 65% of all taxpayers are now wealthy and that the gap between rich and poor is growing.

Certainly most people agree that something needs to be done. Whilst the gang of six in Washington managed to avoid handling the thorny issue of the AMT there are calls for action to be taken almost every year and the continuing back and forth debate as well as those regular year on year fixes have gotten to be too much.

Alex is a freelance journalist and financial blogger. He loves to write about baseball and jazz but spends most of his days writing about mortgages, credit cards and umbrella companies .

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Must I File a Tax Return?

Must I File a Tax Return for 2009?

The short answer to this question, do I have to file a tax return, is yes if your income is above the level required for your filing status. But a couple additional pieces of information affect the answer including your age and the source of your income. IRS.gov is a great resource for the exact tax rules.

In addition to the requirement, it makes sense to file a return to get a refund on any taxes that you did pay during the year. There is the special tax credit, Making Work … Read the rest

Must I File a Tax Return for 2009?

The short answer to this question, do I have to file a tax return, is yes if your income is above the level required for your filing status. But a couple additional pieces of information affect the answer including your age and the source of your income. IRS.gov is a great resource for the exact tax rules.

In addition to the requirement, it makes sense to file a return to get a refund on any taxes that you did pay during the year. There is the special tax credit, Making Work Pay, that is refundable to you even if you do not meet the income requirements to file. A government pension could provide you with a tax credit that will be refunded to you. The Earned Income Tax Credit will also refund money to you beyond what you have paid into the tax system. And there are a number of other tax credits that you might qualify for that you can receive a refund on without having earned enough to file.

Now, if you were self-employed during 2009 and earned over $400, you must file a return regardless of other factors. If you owe special taxes on retirement plans or medical savings accounts, you must file a return for 2009. If you work for tips and need to pay social security and Medicare tax, you need to file. If you need to pay the Alternative Minimum Tax or any recapture tax, you need to file a return. And finally, if you work for a church and your income is greater that $108.28.

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