Alternative Minimum Tax (AMT) Calculator for Individuals
Before going how to use this application given by IRS, below is some details on what is Alternative Minimum Tax (AMT)?
The Alternative Minimum Tax (AMT) is a parallel tax system with having its own regular tax, tax income and its related deductions. To figure out whether you owe any additional tax under the Alternative Minimum Tax system, you need to fill out Form 6251.
If the tax calculated on Form 6251 is higher than that calculated on your regular tax return, you have to pay the difference as AMT.
The Altername Minimum Tax Calculator provided by IRS government is intended to provide a simple test who fill out tax returns without using software to determine whether we may be subject to the AMT.
Below is the link from IRS to check the tax liabilities for your AMT called as AMT Assistant.
Answer a few simple questions about entries on draft 1040 and the system will show the results and will tell you that either you do not owe the AMT or that you must go further and complete Form 6251 to find out if you owe the AMT.
All the information are extracted from IRS website. (http://www.irs.gov) and information regarding AMT is taken from http://en.wikipedia.org/wiki/Alternative_Minimum_Tax