Research Report AMT Coverage by State, 2004
Leonard E. Burman, Carol Rosenberg
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Many taxpayers must calculate their federal income tax liability under two sets of rules: those applying to the regular income tax and those of the alternative minimum tax. If a taxpayer owes more tax under the alternative rules, then the difference is paid as AMT. The AMT hits people in some states harder than it does in others because state and local income and property taxes are not allowed as itemized deduction against the AMT and because states vary based on the income of their residents. This column discusses AMT participation rates by state and the general expansion of the AMT across all the states.
Research Areas Taxes and budgets
Tags State and local tax issues Individual taxes Federal budget and economy
Policy Centers Income and Benefits Policy Center