Facts:
State: Nebraska Married filing Jointly Subject to AMT Children: Two that can be claimed as dependents.
Federal and state tax initially figured with both children claimed as dependents. Subject to AMT.
Did a "what if" scenario of claiming only one child as a dependent. Federal tax paid remains unchanged ("normal" tax increased, of course, but the AMT decreased by a corresponding amount, so no change.) yet state tax decreased.
Performed a second "what if" of claiming no dependents. Federal tax still unchanged as before, and state tax decreases again.
I didn't think I'd ever encounter this. Has anyone else seen a similar situation?