- Thanks to the tax cuts passed by the Republican House and Senate and signed into law by President Trump, millions of families are seeing increased take-home pay and simplification because of the reduction in the Alternative Minimum Tax.
- The Tax Cuts and Jobs Act increased the threshold at which the Alternative Minimum Tax hits taxpayers to $1 million for a family and $500,000 for an individual.
- This will simplify the tax code for millions of Americans. According to one estimate, the number of taxpayers paying the AMT will decrease from 5 million families and individuals to just 200,000.
- Under the old tax code, 4,423,880 families paid the AMT according to IRS SOI data from 2015 (the most recent year available). For instance, 901,370 families in California, 279, 740 families in New Jersey, 513,490 families in New York, and 194,780 families in Illinois paid the AMT. By reducing the AMT, the TCJA enacted important tax simplification and increased take-home pay for these families. Specific statewide data can be found in the below:
State Number of Filers
United States 4,423,880
Alabama 22,740
Alaska 3,890
Arizona 48,170
Arkansas 19,730
California 901,370
Colorado 70,890
Connecticut 103,330
Delaware 10,720
Florida 156,410
Georgia 109,540
Hawaii 14,750
Idaho 12,720
Illinois 194,780
Indiana 46,720
Iowa 29,910
Kansas 24,940
Kentucky 33,890
Louisiana 32,200
Maine 14,530
Maryland 144,510
Massachusetts 173,500
Michigan 91,450
Minnesota 92,700
Mississippi 14,510
Missouri 54,400
Montana 9,730
Nebraska 20,550
Nevada 15,480
New Hampshire 16,370
New Jersey 279,740
New Mexico 12,270
New York 513,490
North Carolina 102,000
North Dakota 5,340
Ohio 122,050
Oklahoma 28,000
Oregon 59,230
Pennsylvania 166,590
Rhode Island 15,270
South Carolina 38,870
South Dakota 4,680
Tennessee 28,410
Texas 236,780
Utah 24,870
Vermont 8,060
Virginia 149,290
Washington 67,100
West Virginia 10,550
Wisconsin 63,380
Wyoming 3,480