Is municipal bond income considered for AMT purposes? - municipal bond quotes
Scenario: Suppose you are retired, and their only source of income from municipal bonds. If the 1040 is completed, it seems that you simply enter the amount of revenue from these tax-exempt bonds, and that's all. Or is it necessary to also AMT?
Wednesday, January 6, 2010
Municipal Bond Quotes Is Municipal Bond Income Considered For AMT Purposes?
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3 comments:
While muni bonds are generally of the AMT, income from the activity of certain "private" municipal bonds are subject to federal Alternative Minimum Tax.
However, the 2006 AMT exemption for married couples $ 62,550 and $ 42,500 for individuals, so that if the muni bond interest Private Activity on these amounts is unlikely that an AMT liability.
Only when the private activity bonds. But given your situation, I think you should not consider AMT if you substantial benefits in terms of the exit comes to you.
Is on a separate note, if you are in a low tax bracket, you may want to consider taxable bonds that you could lead a better return. I often see people with such a large tax-exempt bonds remain (as they take a break for an effective taxation of those).
No, there is no reference to the AMT, but note that the question of whether social security benefits should be taxed.
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