Reply #3: Found a Yahoo article....that is correct. [View All]

[madfloridian]

http://news.yahoo.com/s/nm/taxes_congress_amt_dc

"The U.S. Treasury Department says Congress' failure to act earlier on an AMT reprieve could delay refunds. Taxpayers have until April 15, 2008 to file 2007 returns, but many, especially those due a refund, file as early as January. The agency says it needs time to print forms and update computer programs.

The AMT was enacted in 1969 to ensure the very wealthy did not take advantage of so many breaks that they paid no taxes. But because of inflation and some past legal changes, the tax now looms over a growing number of middle income people.

If Congress fails to act, the tax could hit married couples without children earning as little as $75,000 a year. Because of the way the tax works, families with children are more likely to be captured by the tax at even lower income levels.

According to congressional researchers, a family with one child making just over $70,000 could end up paying the AMT, while a family with two children making just over $66,000 could end up paying.

The proposed relief would allow most families making less than $150,000 to escape the tax."