Alternative Minimum Tax

The Alternative Minimum Tax (AMT) was originally enacted by Congress to prevent certain high-income individuals from paying little of no tax by using exclusions, deductions and credits. 

The Alternative Minimum Tax is a second set of tax laws.  A taxpayer must calculate their tax using both the regular tax laws and the Alternative Minimum Tax laws.  They must pay the tax calculated by the higher of the two. 

For most taxpayers the regular tax law produces the higher tax but each year more and more "average" taxpayers are finding themselves subject to the AMT.  The primary reason for this is the AMT limits are not adjusted for inflation.  

Every year taxpayers need to consider whether they will have to pay the Alternative Minimum Tax (AMT).  Our tax preparation program will automatically determine if you are subject to the Alternative Minimum Tax, prepare the correct forms and calculate the correct tax (Begin Your Return Now). 

You can also use the IRS's AMT Assistant to determine whether they may be subject to the AMT.

The AMT Assistant is an electronic version of the AMT Worksheet in the 1040 Instructions, called the “Worksheet to See if You Should Fill in Form 6251 - Line 45.”

Use the AMT Assistant now!

Additional Resources

• Form 1040, 1040 Instructions (2005)
• Form 6251, Alternative Minimum Tax - Individuals (2005)
• Form 6251, Instructions for Form 6251 (2005)
• Form 1116, Foreign Tax Credit (Individual, Estate, or Trust)