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Alternative minimum tax (AMT) is a tax that was originally designed so that high-income taxpayers who avoided paying regular income tax by using various tax preference items would at least pay some income tax.

Now, with tax rate reductions, a high amount of itemized deductions, or a high number of dependents, it is possible that AMT will apply to a return. The AMT is the difference between the regular tax rate and the calculated alternative minimum tax. The AMT is calculated on Form 6251 Alternative Minimum Tax—Individuals, reported on Schedule 2 (Form 1040) Additional Taxes Line 1, and added to your regular tax.

Alternative minimum tax is reported on the Summary screen and in the Alerts section of the program. From within your TaxAct® return (Online or Desktop):

  • To access the Federal Summary screen, click Federal to expand the menu, then click Summary.
  • To access Alerts, click Review. On smaller devices, click in the upper left-hand corner, then select Review.
  • To review the information on alternative minimum tax on your return:
    1. Click Federal. On smaller devices, click in the upper left-hand corner, then select Federal.
    2. Click Taxes in the Federal Quick Q&A Topics menu to expand, then click Alternative minimum tax.
    3. Continue with the interview process to enter all of the appropriate information.

Note that any link in the information above is updated each year automatically and will take you to the most recent version of the document at the time it is accessed.


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