Can You Dodge the AMT Bullet?

You're not doing yourself a favor if you fail to take deductions you deserve just to avoid the alternative minimum tax.

Editor's note: This is the transcript of Kiplinger Editorial Director Kevin McCormally's commentary on the March 26 broadcast of Nightly Business Report.

I got a question the other day from a Nightly Business Report viewer wondering if she'd come up with a clever way around the alternative minimum tax. She knew that one of the things that can trigger the AMT is a fat state income-tax deduction. Could she simply not claim all of her state income tax, if that would save her from being tossed into the notorious netherworld of the alternative minimum tax?

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Kevin McCormally
Chief Content Officer, Kiplinger Washington Editors
McCormally retired in 2018 after more than 40 years at Kiplinger. He joined Kiplinger in 1977 as a reporter specializing in taxes, retirement, credit and other personal finance issues. He is the author and editor of many books, helped develop and improve popular tax-preparation software programs, and has written and appeared in several educational videos. In 2005, he was named Editorial Director of The Kiplinger Washington Editors, responsible for overseeing all of our publications and Web site. At the time, Editor in Chief Knight Kiplinger called McCormally "the watchdog of editorial quality, integrity and fairness in all that we do." In 2015, Kevin was named Chief Content Officer and Senior Vice President.