If I do not claim certain large unreimbursed job-related deductions, I can minimize the amount of AMT I have to pay. The question is, for the same amount of total tax paid, is there an advantage of taking all the deductions and paying more AMT versus not taking the deductions and paying less AMT? I don't have any significant capital gains.

Zip Code: cp085@Yahoo.com

When dealing with the AMT, once it kicks in, then claiming additional miscellaneous itemized deductions (which includes your employee business expenses) or additional state or local taxes, or real estate taxes won't impact your federal taxes at all. Basically, your regular tax liability will go down as you pile on these expenses, but your AMT will go up by the same amount, so you'll end up at the same spot.

Claiming a lot of employee business expenses might cut your state tax bill, however. You need to see if you live in a state that allows itemized deductions and doesn't have an AMT in place. My understanding is that this situation applies to New York State taxes.

You might also want to defer some of your expenses to next year if possible. Specifically, instead of writing off the cost of your computer purchases, consider depreciating them over 5 years.

Zip Code: cpa@mdtaxes.com