Tag Archives: AMT

April 2017 Podcast Video, Financial Planning Tax Review and Earnings Update- By John Kvale

Whew, that was easy…. tax season is finally mostly over ….

We wanted to look back one last time on our personal taxes before we sunset those tax strategies for the high point of the season….

As a reminder,  we started with an Audio Podcast format for those that are unable to SEE the video or just prefer to listen to the audio… this makes the review slightly longer, but more descriptive.


April 2017 Video


Financial Planning Tip(s)-

AMT Tax Reminder

We ran across a lot of AMT or Alternative Minimum Taxes this season

Here are the key thoughts from our detailed post on AMT earlier this month-

  • Incomes between $170k and $313k joint and singles over $100k – you are in the cross hairs of AMT
  • Deferring income may be useful
  • Accelerate income

There is not a lot of planning changes with AMT, but in this case knowledge may be power!

Possible MAJOR tax reform

Late in the month an overview of major tax reform was released.

Here is a link from the White House

Here is a link from Barron’s that does a pretty good analysis

Here is our article on the possibilities earlier this month

What to do if you overfund your 401k/retirement plan

In our overfunding 401k post here, we discuss how your 401k/retirement plan can get overfunded….. here are the main points

  • Refund the extra amount ASAP
  • Apply the extra to the new year
  • If its a super small amount, its not the end of the world

Capital Market Comments

First Double Digit Earnings growth since 2011 expected

From our friends at Factset, who do a terrific job of outlining historic and future earnings.

Earnings are the ultimate driver of capital markets!

4-27-17 SP earnings estimates - Factset

What is nice about these estimates are that historically companies have been beating the street estimates … if this continues, the actual earnings may be even better double digit growth…. time will tell and we will be watching!

Hello May!

John A. Kvale CFA, CFP

Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth
Management firm.

AMT aka Alternative Minimum Tax … History and Tactics

AMT better known as Alternative Minimum Tax has reared it’s ugly head more frequently than in years past. Given it’s pesky recurring appearances we wanted to explain just what this tax is and a few tactics to possibly lessen its tax teeth.

What is AMT?

Formed from a fury protest of a treasury secretary who noticed high income earners in the late 1960’s not paying any taxes.

Originally known as a “Minimum Tax” passed by legislators in 1969 and enacted in 1970, the original goal was to catch those with huge write-offs that appeared by lawmakers to be abusing the system.

AMT is a secondary tax established for tax payers with higher income, that for one reason or another were paying no income taxes.

This from the IRS, may best sum it up:

“Under the tax law, certain tax benefits can significantly reduce a taxpayer’s regular tax amount. The alternative minimum tax (AMT) applies to taxpayers with high economic income by setting a limit on those benefits. It helps to ensure that those taxpayers pay at least a minimum amount of tax.”

Why am I getting hit with AMT?Uncle Sam

The most likely reason is your income is right in the sweet spot for AMT and you have significant deductions.

If your joint income is between $170k and $313k (Single just over $100k), you are square in the cross hairs of AMT.  Being outside of these ranges under certain circumstances may not provide you protection from AMT taxes.

If you have income in the cross hairs and you have significant deductions, you are likely paying AMT!

What can I do about AMT?

If your income is between the above mentioned parameters, and there is nothing  you can do to adjust your income, then it may be a good idea to defer some of your deductions if you can, into a different tax year.

Look to put off items that may create further AMT,  un-reimbursed business expenses, or other possible delayed write offs may be better utilized in a different tax year, may help.

If you see your income falling in this range, deferring income or aggregating income may be a possibility. While we rarely invite extra income, this may be the one time it makes sense to do so. Raising your income my help your AMT liability.

In a world of knowledge is power, we understand that there may not be a lot you can do about AMT taxes, however the surprise may not be as great and minimization may occur with the above information in mind!

Have a Great Day!

John A. Kvale CFA, CFP

Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth
Management firm.


Our 5 Findings From 2011 Personal Tax Filing Season

Congratulations, it’s almost over ! The official end of regular tax season transpires in just a few hours, and if you are not completely finished yet, click here to see our last post for the forms you may need to file an extension.

Before the information gets cold and thoughts move on to spring, fun, pools and sun, we wanted to give you a few high points we found interesting this season.

  1. AMT (Alternative Minimum Tax) reared its ugly head more frequently this season.
  2. The new tax basis form did not disappoint, and as such there were delays, confusion and frequent redo’s. (Form 8949 Box A, B, C)
  3. Most returns had more documents and greater length, due somewhat to the new tax basis, never the less contributing to bits of confusion as times.
  4. Wash Sales made several cameo appearances, due to market movement, and reporting issues.
  5. It was a stressful season, unlike any for many years before. Through our communication with individuals, professionals, institutions and reporting agencies, IT WAS MORE STRESSFUL, so do not be frustrated if you felt the same !

Bottom line, if you felt a bit more frustration this year, you were not alone. It was rough from all angles.

The good news…It’s almost over !

Have a Great Day!




AMT (Alternative Minimum Tax) and John’s Schedule Tomorrow March 5, 2010

Continuing with our tax related information, I found a nice article from the IRS explaining AMT and will post it below. As a quick reminder, I will be out of the office tomorrow, traveling to NY, but will return to the office Monday.

Have a Great Day and Nice Weekend!


Seven Facts to Help You Understand the Alternative Minimum Tax

IRS Tax Tip 2010-33The Alternative Minimum Tax attempts to ensure that anyone who benefits from certain tax advantages pays at least a minimum amount of tax. Here are seven facts the Internal Revenue Service wants you to know about the AMT and changes to this special tax for 2009.

  1. Tax laws provide tax benefits for certain kinds of income and allow special deductions and credits for certain expenses. These benefits can drastically reduce some taxpayers’ tax obligations. Congress created the AMT in 1969, targeting taxpayers who could claim so many deductions they owed little or no income tax.
  2. Because the AMT is not indexed for inflation, a growing number of middle-income taxpayers are discovering they are subject to the AMT.
  3. You may have to pay the AMT if your taxable income for regular tax purposes plus any adjustments and preference items that apply to you are more than the AMT exemption amount.
  4. The AMT exemption amounts are set by law for each filing status.
  5. For tax year 2009, Congress raised the AMT exemption amounts to the following levels:
    • $70,950 for a married couple filing a joint return and qualifying widows and widowers;
    • $46,700 for singles and heads of household;
    • $35,475 for a married person filing separately.
  6. The minimum AMT exemption amount for a child whose unearned income is taxed at the parents’ tax rate has increased to $6,700 for 2009.
  7. If you claim a regular tax deduction on your 2009 tax return for any state or local sales or excise tax on the purchase of a new motor vehicle, that tax is also allowed as a deduction for the AMT.

Taxpayers can find more information about the Alternative Minimum Tax and how it impacts them by accessing IRS Form 6251