The Alternative Minimum Tax attempts to ensure that anyone who benefits from certain tax advantages pays at least a minimum amount of tax. The AMT provides an alternative set of rules for calculating your income tax. In general, these rules should determine the minimum amount of tax that someone with your income should be required to pay. If your regular tax falls below this minimum, you have to make up the difference by paying alternative minimum tax.
Here are six facts the Internal Revenue Service wants you to know about the AMT and changes for 2011.
Use the AMT Assistant at www.irs.gov to determine whether you may be subject to the AMT. You can find more information about the Alternative Minimum Tax and how it affects you by accessing IRS Form 6251, Alternative Minimum Tax —Individuals, and its instructions at www.irs.gov. You can also order the form by calling 800-TAX-FORM (800-829-3676).
TaxACT Free Federal and Deluxe Editions help you determine whether you're subject to the AMT, and if so, guide you through Form 6251. Start your federal return now.