Congress Passes AMT Fix Legislation

On December 19, 2007, the House passed and sent to the President the Tax Increase Prevention Act of 2007.  The legislation increases AMT exemption amounts for 2007 to $44,350 for single taxpayers and $66,250 for joint filers.  The legislation also extends through 2007 the provision allowing most nonrefundable tax credits for AMT purposes.  There are no revenue raising offsets included in the legislation.  The President is expected to sign the legislation.  The legislation is forecast to keep over 20 million taxpayers from being caught by the AMT for the first time in 2007.