Four Helpful Facts about the Alternative Minimum Tax
The Alternative Minimum Tax may apply to you if your income exceeds a certain amount. Here are four helpful facts about the AMT:
1.You may have to pay the tax if your taxable income plus certain adjustments is more than the AMT exemption amount for your filing status. The 2012 AMT exemption amounts for each filing status are:
a.Single and Head of Household = $50,600
b.Married Filing Joint and Qualifying Widow(er) = $78,750
c.Married Filing Separate = $39,375
2.AMT attempts to ensure some individuals and corporations who claim certain exclusions, tax deductions and tax credits pay a minimum amount of tax.
3.Utilize IRS e-file to prepare and file your tax return. The AMT is calculated using different rules than those you use to figure your regular income tax. IRS e-file software will determine if you owe AMT, and if you do, it will calculate the amount for you.
4.If you file a paper return, use the AMT Assistant tool on IRS.gov to find out if you may need to pay the tax.