If you’ve never had to pay the Alternative Minimum Tax before, it doesn’t mean that you may not have to pay it in the future. If your income is above a set threshold, this may be your year to pay. The point of the tax is to ensure that taxpayers are responsible for a minimum amount of taxes if they claim specific tax benefits.
What You Need to Know
- Income Threshold – You’ll need to pay the Alternative Minimum Tax if your taxable income including adjustments is greater than your exemption amount, which is dependent on your filing status and income amount. Generally, if your taxable income is below the exemption amount, you won’t be responsible for AMT.
- Exemption Amount – For 2015, the AMT exemption amounts follow:
- Single: $53,600
- Married Filing Jointly: $83,400
- Married Filing Separately: $41,700
- E-file – Sometimes, the requirements for the AMT can get complicated, so e-filing can make things significantly easier. E-filing software can calculate AMT for you, so there’s less margin for error.
- IRS Tool – The IRS has an AMT assistant tool on their website, at IRS.gov, which can help you determine if you are responsible for paying AMT.
- Forms – If you do owe AMT, then typically you’ll have to file Form 6251, Alternative Minimum Tax – Individuals. In some cases, taxpayers can file Form 1040A and use the AMT worksheet.
