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yes, i am being hit with AMT ($1629 unfortunately... oops) but the deductions im looking at are well over the 2% floor. AGI is around 133K. basically i have about $40,000 in misc sched A deductions (charity, home office, legal, unreimbursed employee expenses), but any amount over $23,210 doesnt change anything (i just played with the numbers to figure out where it stopped making a difference). If I drop below that figure, then the tax owed starts going up, it just appears once I reach that magic number, additional deductions don't appear to count for anything.

I suspect AMT is the culprit. Stop looking at that ridiculous "watch your refund grow" number and look at the return to see what happens when you change Schedule A amounts. I suspect you'll find that tax on line 40 goes down, but AMT on line 41 goes up an equal amount.

Phil Marti
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