Tax Tips: Doreen Griffith - Hawaii News Now - KGMB and KHNL

Tax Tips: Doreen Griffith

Doreen Griffith Doreen Griffith

HONOLULU (HawaiiNewsNow) - Each year, more and more Americans discover to their dismay that they are subject to the Alternative Minimum Tax (AMT) which knocks out a lot of exemptions, deductions and credits they may have gotten used to when doing their regular income taxes. Here are the answers to common questions about AMT.

What is AMT?

· Alternate tax regime

How could it impact me?

· Starts with your federal regular taxable income

· Then disallows some of the deductions that a taxpayer has taken or adds income that was not taxable, such as:

o Interest from private activity bonds

o Income from exercise of incentive stock options

o State income and property taxes

o AMT items reported through a partnership or estate/trust Schedule K-1

· You may have to pay the AMT if your taxable income for regular tax purposes plus any adjustments and preference items that apply to you are more than the AMT exemption amount.

How do I get more information?

· Form 6251 calculates AMT for the 2009 individual taxpayer

· IRS also has the AMT Assistant on its website to help a taxpayer calculate if they are in AMT

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