How AMT Changes Affect Filing Season 2008

The IRS posted on its website that the upcoming tax season is expected to start on time for everyone except certain taxpayers affected by changes to Alternative Minimum Tax.

The upcoming tax season is expected to start on time for everyone except for certain taxpayers potentially affected by late enactment of the Alternative Minimum Tax "patch." Following extensive work in recent weeks, the IRS expects to be able to begin processing returns for the vast majority of taxpayers in mid-January. However, as many as 13.5 million taxpayers using five forms related to the Alternative Minimum Tax (AMT) legislation will have to wait to file tax returns until the IRS completes the reprogramming of its systems for the new law.

IRS has targeted Feb. 11, as the potential starting date for taxpayers to begin submitting the five-related returns affected by the legislation. The February date allows the IRS enough time to update and test its systems to accommodate the changes without major disruptions to other operations related to the tax season. See IRS News Release 2007-209 and these questions and answers for more information.

Returns that include the following forms cannot be filed until Feb. 11, 2008:

• Form 8863 – Education Credits
• Form 5695 – Residential Energy Credits
• Schedule 2/Form 1040A – Child and Dependent Care Expenses for Form 1040A Filers
• Form 8396 – Mortgage Interest Credit
• Form 8859 – District of Columbia First-Time Homebuyer Credit

Check this page for further AMT-related updates.

The AMT came into being with the Tax Reform Act of 1969. Its purpose was to target a small number of high-income taxpayers who could claim so many deductions they owed little or no income tax. A growing number of middle-income taxpayers are discovering they are subject to the AMT.

Related Websites

Tax Topic 556 – Alternative Minimum Tax

Form 6251 – Alternative Minimum Tax

1040 Central – Forms, publications, calculators and other information for the filing season