The Alternative Minimum Tax (AMT) is designed to force many affluent taxpayers who qualify for certain exemptions to pay a greater share of taxes. Though the AMT was permanently indexed to inflation in 2013, many Americans are still subject to the tax.
Here are a few things you should know:
You may be subject to the AMT if your modified adjusted gross income (MAGI) is above the AMT exemption amount for your filing status. The 2014 AMT exemption amounts for each filing status are:
- Single and Head of Household = $52,800
- Married Filing Joint and Qualifying Widow(er) = $82,100
- Married Filing Separate = $41,050
The rules for calculating the AMT are more complex than those for regular income tax, so it’s a good idea to work with a qualified tax professional or use the IRS e-file software.
If you find that you owe AMT, you usually must file Form 6251.
Tip courtesy of IRS.gov