The Alternative Minimum Tax 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 2016 AMT exemption amounts for each filing status are:
o Single and Head of Household = $53,900
o Married Filing Joint = $83,800
o Married Filing Separate = $41,900
o Head of Household = $53,900
· 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 want to file a paper tax return, the AMT Assistant tool on IRS.gov can also help.
· If you find that you owe AMT, you usually must file Form 6251.
For more information about the AMT, see Form 6251 instructions on IRS.gov or speak with a tax specialist in your area.