How to Calculate AMTI

The Form 6251 works in conjunction with Form 1040

AMTI stands for Alternative Minimum Taxable Income. The Alternative Minimum Tax is designed to stop wealthy taxpayers from using tax loopholes to completely avoid paying taxes. The amount of income this task is based on, the Alternative Minimum Taxable Income, is different than the general taxable income used to compute personal income tax.

Things You'll Need

• Your income tax return (IRS Form 1040 or equivalent)
• IRS Form 6251

Instructions

1. Complete IRS Form 1040 as usual.

2. Enter your information concerning your deductions and income from your Form 1040 into Lines 1 to 28 on Form 6251.

3. Add lines 1 to 28 together to obtain AMTI.

Tips & Warnings

• Keeping accurate and organized records during the year will greatly assist you in preparing your tax return.

• Use the worksheet provided in the instructions for Form 1040 to see if it is necessary for you to complete Form 6251.

• IRS requirements and tax laws change from year to year, make sure you are using the most current information to complete your taxes (or use the legal requirements in effect for the tax year you are examining).

References

• Fairmark.com: Alternative Minimum Tax 101
• Wall Street Journal SmartMoney: The Alternative Minimum Tax
• TurboTax: Alternative Minimum Tax: Common Questions

Resources

• IRS Alternative Minimum Tax Assistant for Individuals