The Alternative Minimum Tax and You
The Alternative Minimum Tax was originally designed to ensure that ultra-wealthy taxpayers don't evade taxes through excessive deductions. But now it is hitting a growing number of middle-income families. And with a rate that hovers from 26 to 28 percent, the AMT can severely alter a tax return.
While the tax itself is fairly obscure to the American public, some of its rules -- and how it works -- are even murkier to many taxpayers. It remains to be seen what Congress and the IRS can do to improve the program. NPR's Steve Inskeep talks with Sandra Block, personal finance columnist for USA Today.
Copyright 2022 NPR. To see more, visit https://www.npr.org.