October 25, 2016
Early Withdrawal from a retirement account

Are You Subject to the Alternative Minimum Tax?

If you’re unfamiliar with the Alternative Minimum Tax, or the AMT, it may not affect you. The AMT forces many wealthy taxpayers who qualify for certain exemptions to pay a greater share of taxes. Though the AMT permanently indexed to inflation in 2013, many Americans are still subject to the tax. Here are a few things that may need to know. AMT Rules 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: Single and Head of Household = $53,900 Married Filing Joint = $83,800 Married Filing Separate = $41,900 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 uses 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 […]