Tax Hell

Six years ago, June and Ron Speltz got caught by the alternative minimum tax, which triggered a tax bill of more than $260,000 on income they'd never see. Their fight to change the law finally paid off. This article talks about what they did to change the law. Luckily for them, they had $141,000 to pay against the tax credit, although some of that had to be borrowed. How tragic for them! I have never heard of the alternative minimum tax, but I have to say -- it sounds scary. Tax law is quirky and hard to decipher.

Here's more information on AMT
and here are top ten things that cause AMT liability.

Speaking of taxes, the Miami Herald put up a nice list of tax changes and how it affects taxpayers, particularly parents.

Make less than $52,000? You may qualify for free filing. Check out the IRS website on companies that provide free tax preparation (generally through software like TaxAct, Liberty Tax Online and TurboTax Freedom Edition) and e-file for free if your adjusted gross income is low enough. Not sure of your adjusted gross income? At TaxAct you can fill out the tax forms first and at the end, you pay $7.95 to e-file ($12.95 for state). Since I just saw the same package at Target for $52, I think this is a great deal.