AMT – Alternative Minimum Tax – How To Find Info

The alternative minimum tax is a procedure set up to keep the richest of Americans from avoiding tax-paying responsibilities. As is typical of the federal government, they failed to include any language adjusting for income growth. As a result, the alternative minimum tax creams many taxpayers even though it was never intended to cover them.

So, why don’t our beloved leaders amend the relevant codes? Politicians giving up money they can spend on wars and favorite, but unnecessary, projects in their districts to keep voters happy? Indeed, you aren’t that naïve anymore. Oh, they will talk about repealing or modifying it, but it just never seems to happen. Hmmm…

To determine if the alternative minimum tax applied to your situation, you must take a straightforward step. Fill out your taxes using the standard 1040 forms and the alternative minimum tax forms. What a complete waste of time. Fortunately, the IRS seems to agree.

Much like those handy online mortgage calculators, the IRS has taken the alternative minimum tax into the digital world. It has created a new online tool to enter the relevant information and find out if you are subject to the alternative minimum tax. One goes to the IRS website, searches for “AMT Assistant,” and starts entering information. The process takes between five and 10 minutes if you have your financial number handy. If you don’t, add however much time it takes you to get your records together.

Now, you might be a little nervous about entering financial information on the IRS site. What if they are tracking you? Don’t worry. It is anonymous. The information can’t be traced back to you unless the IRS wanted to hunt IP numbers through hosting companies and computer systems. Given it takes 30 minutes to get an IRS representative on the phone, it is improbable this will occur.

When you’ve got your courage up to full tilt, give it a try. Maybe, just maybe, you’ll find you aren’t subject to the alternative minimum tax.