Are you aware of the Alternative Minimum Tax? It’s important to know whether or not it applies to you, and what exactly it means at tax time. Taxpayers who have an annual income above a specified set amount may meet the guidelines required by the Alternative Minimum Tax. This tax strives to keep a minimum standard tax payment for individuals who claim certain credits. This tax season, you’ll want to keep the following information regarding the AMT in mind when filing your return.
If your taxable income, with adjustments, is greater than the predetermined exemption amount, you will need to pay the Alternative Minimum Tax. Each filing status has its own exemption amount:
- Married Filing Jointly: $82,100
- Unmarried, Single Filing Taxpayers: $52,800
- Married Taxpayers Filing Separately: $41,050
Taxpayers whose annual taxable income is lower than the amounts above for their relative filing status are usually not required to pay the AMT.
In order to ensure accurate filing, you’ll want to become more familiar with the requirements of the Alternative Minimum Tax, as they are often more advanced than traditional income tax rules. Tax software can help you determine if you are subject to the AMT, and how to file. If you need to pay, the software can easily calculate the amount of your payment, which is filed using Form 6251, Alternative Minimum Tax for Individuals.