Subject: High School Teacher Subject to AMT! Comment: Subject: High School Teacher Subject to AMT! July 13, 2005 Dear Chairmen Mack & Breaux : I am a high school science teacher as well as a church organist and in the years 2001 and 2002 my income crossed the line and I had to pay the Alternative Minimum Tax, AMT. A bit of background is in order. I live and work at the east end of Long Island, NY. My teaching salary falls somewhat above the middle of my district's salary schedule. My school's district's average salaries traditionally fall in the lower half of salaries paid to teachers in Suffolk County. I am also the Director of Music at a local church and earn a very good salary for this part-time position. The combination of these two positions has allowed me to live comfortably, not lavishly, with my husband, a fellow educator, and my daughter in this increasingly expensive area of the country. My husband has preferred that I file my taxes separately instead of part of a joint return. He has a small business in which he works as a flight instructor. Since there is some risk involved, he wanted to limit my financial liability resulting from any problems that could arise from his pursuit. Since I chose to file taxes as “Married Filing Separately”, I was paid the AMT in both 2001 and 2002. I paid $584.00 in 2001 and $109.00 in 2002. While these amounts are tiny compared with those paid by others, such as those incurred by stock optionees, I was nonetheless shocked that a high school physics teacher and church organist was subject to the “millionaire’s tax”. I should also mention that I paid the tax on my income, only. Had I chosen to again file separately in 2003, I would have paid over $800 in AMT. As a result of having to pay AMT I have lost a bit of my independence by having to file taxes with my husband, and I have cut back on my charitable contributions. Certainly there is a need to assure that everyone pays his or her fair share of taxes. However, due to bracket creep, public school teachers in high-expense areas are now subject to this tax. It is not right and needs to be fixed. Respectfully submitted, Kim Palermo-Bogardus 1st Congressional District |