Income Tax Help – How to avoid the AMT Tax

The best action you can take is to be proactive about your tax planning: evaluate the year's income tax liability before the end of the year and determine whether you're subject to (or close to) the Alternate Minimum Tax (AMT).

If you’re in the higher Income Tax bracket and are being affected by the AMT tax there is one think you can do to reduce the AMT effect on your itemized deductions. You can give money to a charity. Charitable contributions are not reduced by the AMT tax.

It’s your choice, let the government get the money through the AMT tax or give the money to a charity. Giving the money to a charity will reduce or eliminate your AMT tax. Reducing or eliminating the AMT tax will increase your Itemized Deductions which will lower your taxes. It is a Win-Win for you and for the charity.