What If Calcualtion
I have a client who is over $190k in wages. I tried to see what would happen if he were to defer some income next year by increasing his 401k, thereby reducing his AGI. But when I use the "What If" sheet and check it to use the 2008 tax table, his AMT goes up 3 fold. If I use the 2007 rates, it shows, as you would expect, a nice tax savings. Anyone know what is up with this?
