AMT
- Tips You Should Know
- Tips You Should KnowAuthor: Keith Huggett
Despite the state of our economy, you may in fact have a prosperous year. In fact, if you have a really good year, you may earn enough money that you get hit by the Alternative Minimum Tax or AMT. The AMT attempts to ensure that some individuals who claim certain tax benefits pay a minimum amount of tax. The IRS has published some tips for you to let you know when you become affected by the AMT:
- 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 IRS suggests using their e-file software to file your return. While it will figure AMT for you if you owe it, there are other aspects of filing your taxes that you must take into account before choosing how to file your taxes. When AMT comes into play we suggest you contact professional assistance when filing your tax return.
- If you file a paper return, use the AMT Assistant tool on IRS.gov to find out if you may need to pay the tax.
- 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.
