The Alternative Minimum Tax (AMT) was established in 1969 to ensure that the wealthiest U.S. taxpayers could not use certain deductions, exemptions, losses and credits to avoid paying income tax entirely. The AMT uses a separate set of rules from the regular income tax system and a variety of factors, including personal exemptions, credits and/or deductions, can trigger the AMT.
Because AMT was not indexed for inflation, and because of recent tax cuts, an increasing number of middle-income taxpayers have been finding themselves subject to AMT.
For years, Congress has passed one-year patches aimed at minimizing the impact of the AMT. The most recent patch raised exemption amounts for 2009. There is currently no patch in place for 2010.
The 2009 numbers in the table below reflect the exemption amounts in place as a result of the American Recovery and Reinvestment Act of 2009.
| Filing Status | 2008 | 2009 |
|---|---|---|
| Married, filing jointly | $69,950 | $70,950 |
| Single or head of household | $46,200 | $46,700 |
Consult your tax professional for information about the AMT and how it relates to your situation.
Learn more about alternative minimum tax (AMT) relief
This information is for use with concurrent or prior delivery of a fund prospectus. Investors should consider the investment objectives, risks, charges and expenses of a mutual fund carefully before investing. To learn more about this and other important information about each fund, download a free prospectus. The prospectus should be read carefully before investing.
Investment products are not federally or FDIC-insured, are not deposits or obligations of, or guaranteed by any financial institution, and involve investment risks including possible loss of principal and fluctuation in value.
Columbia Management Investment Advisers, LLC and its affiliates do not offer tax or legal advice. Consult with your tax advisor or attorney regarding your specific situation.
Not all products and all share classes are available through all firms.
RiverSource®, Seligman® and Threadneedle® mutual funds are distributed by Columbia Management Investment Distributors, Inc. (formerly known as RiverSource Fund Distributors, Inc.), member FINRA and managed by Columbia Management Investment Advisers, LLC (formerly known as RiverSource Investments, LLC). Threadneedle mutual funds are subadvised by Threadneedle International Limited, an affiliate of Columbia Management. Seligman is an offering brand of Columbia Management.