The Alternative Minimum Tax may apply to you if your income is above a certain amount. Here are five important facts to know about the AMT:
- 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:
- Single and Head of Household = $50,600;
- Married Filing Joint and Qualifying Widow(er) = $78,750; and
- Married Filing Separate = $39,375.
- AMT attempts to ensure that some individuals and corporations who claim certain exclusions, tax deductions and tax credits pay a minimum amount of tax.
- You should use IRS e-file to prepare and file your tax return. You figure AMT 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 figure the tax for you.
- 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.