Alternative Minimum Tax
You may have to pay this tax if your income is above a certain amount.
The AMT attempts to ensure that some individuals who claim certain tax benefits pay a minimum amount of tax.
Here are some things from the IRS that you should know about AMT:
Its dreadful to have to pay this:
You may have to pay the tax if your taxable income, plus certain adjustments, is more than the AMT exemption amount for your filing status.
If your income is below this amount, you usually will not owe AMT.
The 2013 AMT exemption amounts for each filing status are:
- Single and Head of Household – $51,900
- Married Filing Joint and Qualifying Widow(er) – $80,800
- Married Filing Separate – $40,400
The rules for AMT are more complex than the rules for regular income tax. The best way to make it easy on yourself is to use IRS e-file to prepare and file your tax return.
If you owe AMT, you usually must file Form 6251, Alternative Minimum Tax – Individuals.
Some taxpayers who owe AMT can file Form 1040A and use the AMT Worksheet in the instructions.
Alternative Minimum Tax – What you need to KNOW, Former IRS
