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Comedian Rita Rudner once said, "I think
men who have a pierced ear are better prepared for marriage. They've experienced pain and bought jewelry."
And speaking of pain in marriage, it's been a while since we've brought up the marriage penalty. Thankfully, Congress
has taken steps to ease much of the suffering by adjusting the standard deduction and income ranges subject to
the 10% and 15% tax rates for joint filers.
However, much like a 1970s-era rock band,
the marriage penalty is not dead yet and threatens to stage a reunion tour due to the Alternative Minimum Tax (AMT).
If Congress does not pass new legislation this year, about 25 million Americans will be subject to AMT, significantly
more than the 4 million in 2006.
What's a concerned taxpayer to do? For starters, we recommend hanging on to your spouse, skipping the KISS reunion
tour, and calling your CPA if you have any questions regarding AMT or the marriage penalty.
To ask a question, request additional information,
or unsubscribe, simply reply to this message. And if you know of anyone who may be interested in "Taxing Details,"
don’t hesitate to pass it along.