The Alternative Minimum Tax (AMT) is an archaic tax law that was originally intended to make sure that high income earners were “paying their fair share.” As if the tax law was not complicated enough, the tax law experts thought it necessary to not only calculate your taxes once, but twice. The first time it is calculated through the regular methods (brackets, etc) and the second time through the AMT. Whichever is higher is the tax you pay. So, today we will answer the question “Will I pay the AMT”
The new Tax Cuts and Jobs Act took changed my most recent paycheck. The increase was substantial. I had previously made the calculations to determine how much it ought to increase my paycheck, but was eager to see what the number would actually be. Today we will answer the question of “how does the tax bill affect me?”
If it causes you to go into debt, finance/leverage a purchase, or prevent you from adequately saving it is likely not worth it! That is not intentional spending. Intentional spending makes your head and your heart happy! If it isn’t accomplishing both, it isn’t intentional spending. Read more to find out what is!