Help with the AMT

The alternative minimum tax began as a way to ensure that taxpayers pay at least a minimum amount of tax. The AMT has a completely different set of calculations than the regular tax and causes a lot of confusion among the taxpaying community.

Some deductions are not allowed when calculating your tax under the AMT rules, including deductions for state and local taxes. The AMT also does not allow the standard deduction or personal exemptions. This can place some middle-income taxpayers in the AMT zone.

You can do a quick check to see if the AMT is something you need to consider. The IRS has an AMT Assistant on their Web site. Answer a few questions, and the web utility will let you know if you need to fill out the AMT forms.