4 ms·
The deduction you can make on your federal taxes for state taxes paid vanishes once you're in AMT land which you almost certainly are if you're in the 39.6% tax
by gergles 11y ago
The deduction you can make on your federal taxes for state taxes paid vanishes once you're in AMT land which you almost certainly are if you're in the 39.6% tax bracket.
- harryh 11y agoIf you're paying the AMT the 39.6% doesn't apply. The top AMT rate is 28%. Whether you pay the AMT or not isn't really based on how much money you make. It's based on how many deductions not allowed under the AMT you take (deductibility of state taxes being the biggest one).