Slide Show | March 2008
BEST AND WORST STATES TO AVOID THE AMT
Ironically, living in a region with high state taxes -- including income, sales and property tax -- can increase your federal tax bill instead of reducing it. When moderate to wealthy taxpayers try to take these deductions on Form 1040, the amounts can be large enough to trigger the alternative minimum tax, which excludes these deductions.
Based on the most recent IRS data*, the Tax Foundation reports nearly half of all AMT filers, 44.2%, live in the five highest taxed states.
See which states offer best bets for avoiding or triggering the AMT and find out how yours ranks.
* AMT rankings are based on 2005 data. For statistical integrity 2005 data is referenced for all states, with more current data provide through notations. BEST AND WORST STATES TO AVOID THE AMT