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PROJECTING YOUR 2006 AMT

December 03, 2006

A reader asks:

Your Dec. 1 column advises different tax strategies depending on whether you're subject to the AMT. The only problem is that as of Dec. 1 the IRS has not posted a 2006 AMT form (6251). How can taxpayers decide whether they're subject to the AMT without the 2006 form?

Good question. There should be few changes to the AMT form. The biggest change is the increased exemption amounts legislated last May for 2006, and the change in the breakpoints for the 15% bracket for regular tax. To help those who want to estimate their 2006 AMT, I have dummied up a 2006 form by updating the 2005 form with the new exemption and 15% bracket figures. You can find them in the extended entry below; to see them in full size, click on them.

Remember - these are not official forms, so don't use them to prepare your 2006 returns.

Click here to see the article the correspondent refers to.

UPDATE: Doh! Kerry Kerstetter kindly points out the IRS Draft AMT form is up at the IRS website, here. Instructions are here.

2005 AMT form updated with 2006 exemption figures. Click image to enlarge.

You can skip the calculations on line 29 and enter "0" if:

- You are single or head of household and line 28 exceeds $282,500, or
- you are married filing jointly or widower and line 28 exceeds $400,200, or
- Your are married filing separately and your AGI exceeds $200,100.

2005 AMT form, page 2, updated with 2006 15% bracket figures for line 43.