AMTtest

Are you subject to the AMT?

All taxpayers who are subject to the regular tax are potentially subject to the AMT. You
can determine if you are subject to the AMT by filling out the worksheet below.

NOTE:

Not all

taxpayers can use th

worksheet. See

AUTION

below.

To use the worksheet, you must first calculate your regular tax using Form 1040 and
whatever schedules and other forms are applicable in your situation. If you would like
the AMT Advisor to determine if you are subject to the AMT for you, click here
to find out how to request this service.

NOTE:

Due to the complex nature of the AMT, the

worksheet can only definitively

tell you that you are not subject to the AMT. If the

results indicate

that you may

be subject to the AMT, you must fill out

a Form 6251

Alternative Minimum Tax -

Individuals,

to determine whether or not you

are subject to the AMT. If it turns out

that you are not subject to the AMT, your effort will

not

be wasted because the

IRS requires taxpayers

that the worksheet indicates may be subject the AMT

file a Form 6251 to prove that they are not subject to it.

CAUTION:

Regardless of whether the calculator or the worksheet shows you to

subject to the AMT, you must fill out (and file) Form 6251 if you claim or have

received

any of the following items:

Accelerated depreciation

Stock

you received

by exercising an incentive stock option

that

you did not dispose of

he same year.

Tax-exempt interest from private activity bonds.

Intangible drilling, circulation, research, experimental or mining costs.

Amortization of pollution control facilities.

Income or loss from tax-shelter farm activities or passive activities.

Income from long-term contracts not

calculated

using the percentage-of-completion

method.

Interest paid on a home mortgage not used to buy, build, or substantially improve your

home.

Investment interest expense reported on

Form 4952,

Investment Interest Expense

Deduction

10.

Net operating loss deduction.

11.

Alternative minimum tax adjustments from an estate, trust, electing large

partnership, or cooperative.

12.

A Code Section 1202 exclusion.

Worksheet

1. Are you filing Schedule A?
Yes. Enter the amount from Form 1040, line 41.... . . . . . . . . . . . . 1. _______
No.   Enter the amount from Form 1040, line 38, and go to
     line 5.
2. Enter the smaller of the amount on Schedule A, line 4, or
2.5% (.025) of the amount on Form 1040, line 38 . . . . . . . . . . . . .2. _______

3. Enter the total of amounts from Schedule A, lines 9 and 26 . . . . 3. _______

4. Add lines 1 through 3 above . . . . . . . . . . . . . . . . . . . . . . . . . . . .4. _______

5. Enter any tax refund from Form 1040 lines 10 and 21 . . . . . . . . .5. _______

6. Subtract line 5 from line 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6. _______

7. Enter the amount from Form 8914, line 2 . . . . . . . . . . . . . . . . . .7. _______

8. Subtract line 7 from line 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8. _______

9. Enter the amount shown below for your filing status.
• Single or head of household—$40,250
• Married filing jointly or qualifying widow(er)—$58,000 }. . . . . . 9. _______
• Married filing separately—$29,000

10. Is the amount on line 9 more than the amount on line 8?
No.   You do not need to fill in Form 6251. STOP.
Yes. Subtract line 9 from line 8 . . . . . . . . . . . . . . . . . . . . . . . . . .10. _______

11. Enter the amount shown below for your filing status.
• Single or head of household—$112,500
• Married filing jointly or qualifying widow(er)—$150,000 }. . . . . 11. _______
• Married filing separately—$75,000

12. Is the amount on line 8 more than the amount on line 11?
No.   Enter the amount from line 10 on line 14 and go to
        line 15.
Yes. Subtract line 11 from line 8 . . . . . . . . . . . . . . . . . . . . . . . .12. _______

13. Multiply line 8 by 25% (.25) and enter the result but do not
enter more than line 9 above . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13. _______

14. Add lines 10 and 13 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14. _______

15. Is the amount on line 14 more than $175,000 ($87,500 if
married filing separately)?
Yes. STOP* Fill in Form 6251 to see if you owe the alternative
       minimum tax.
No.   Multiply line 14 by 26% (.26) . . . . . . . . . . . . . . . . . . . . . . . .15. _______

16. Enter the amount from Form 1040, line 44, minus the
total of any tax from Form 4972, Tax on Lump Sum Distributions
and any amount on Form 1040, line 47. If you used Schedule J
to calculate your tax, the amounts for lines 44 and 47 of Form
1040 must be recalculated without using Schedule J. . . . . . . . . 16. _______

17. Is the amount on line 15 more than the amount on line 16?
Yes. Fill in Form 6251 to see if you owe the alternative
      minimum tax.*
No.   You do not need to fill in Form 6251.

*If you are not subject to the AMT, file the filled out Form 6251 with your return to show
the IRS that you are not subject to it.