H.R. 3996 the "Tax Increase Prevention Act of 2007," which extends the AMT patch, has passed the Senate and House, and is expected to be signed by the President.
The bill provides a one-year extension to the alternative minimum tax (AMT) exemption. The AMT exemption amounts, which are increased for inflation, are $66,250 for joint filers and $44,350 for individuals. The bill also extends the use of personal nonrefundable credits for AMT and regular tax purposes through December 31, 2007. These two changes will save an estimated 23 million taxpayers from paying AMT for the 2007 tax year.
Click here for a copy of the bill.
When AMT was enacted by Congress, the exemption for married couples was $30,000 and not indexed for inflation, that amount would be about $165,000 today if it had been indexed for inflation.
