Tax Payer Advocate Service - your voice at the irs.
Welcome!
Welcome to the Taxpayer Advocate Service (TAS) Tax Toolkit! This Tax Toolkit is a website that contains useful tax information for individuals, businesses, tax professionals and media, including news and updates, ways TAS helps taxpayers, and important information about tax topics and rights.
Who We Are
As an independent organization within the IRS, we help taxpayers resolve problems with the IRS and recommend changes that will prevent the problems. We are “Your Voice at the IRS.”
http://www.taxpayeradvocate.irs.gov/
as listed on the IRS website
Thursday, September 29, 2011
IRS Alternative Minimum Tax- topic 556
Topic 556 - Alternative Minimum Tax
The tax laws provide tax benefits for certain kinds of income and allow special deductions and credits for certain kinds of expenses. The alternative minimum tax (AMT) attempts to ensure that anyone who benefits from these tax advantages pays at least a minimum amount of tax.
The AMT is a separately figured tax that eliminates many deductions and credits, thus increasing tax liability for an individual who would otherwise pay less tax. The tentative minimum tax rates on ordinary income are percentages set by law. For capital gains and certain dividends, the rates in effect for the regular tax are used.
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. The exemption amounts are set by law for each filing status and are listed in the Form 6251 Instructions.
To find out if you may be subject to the AMT, refer to the Form 1040 Instructions and the Form 1040A Instructions. If you are filing the Form 1040 you may use the AMT Assistant for Individuals, which is an electronic version of the AMT worksheet available on the IRS webpage at www.irs.gov. The AMT worksheet may tell you that you do not owe the AMT or it may direct you to Form 6251, Alternative Minimum Tax - Individuals. If you are directed to Form 6251, you will have to complete that form to determine whether you owe the AMT. Form 6251 (PDF), Alternative Minimum Tax - Individuals, is available in a PDF format on the IRS web page.
If you are not liable for AMT this year, but you paid AMT in one or more previous years, you may be eligible to take a special minimum tax credit against your regular tax this year. If eligible, you should complete and attach Form 8801 (PDF), Credit for Prior Year Minimum Tax - Individuals, Estates, and Trusts.
Topic 556 - Alternative Minimum Tax
The tax laws provide tax benefits for certain kinds of income and allow special deductions and credits for certain kinds of expenses. The alternative minimum tax (AMT) attempts to ensure that anyone who benefits from these tax advantages pays at least a minimum amount of tax.
The AMT is a separately figured tax that eliminates many deductions and credits, thus increasing tax liability for an individual who would otherwise pay less tax. The tentative minimum tax rates on ordinary income are percentages set by law. For capital gains and certain dividends, the rates in effect for the regular tax are used.
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. The exemption amounts are set by law for each filing status and are listed in the Form 6251 Instructions.
To find out if you may be subject to the AMT, refer to the Form 1040 Instructions and the Form 1040A Instructions. If you are filing the Form 1040 you may use the AMT Assistant for Individuals, which is an electronic version of the AMT worksheet available on the IRS webpage at www.irs.gov. The AMT worksheet may tell you that you do not owe the AMT or it may direct you to Form 6251, Alternative Minimum Tax - Individuals. If you are directed to Form 6251, you will have to complete that form to determine whether you owe the AMT. Form 6251 (PDF), Alternative Minimum Tax - Individuals, is available in a PDF format on the IRS web page.
If you are not liable for AMT this year, but you paid AMT in one or more previous years, you may be eligible to take a special minimum tax credit against your regular tax this year. If eligible, you should complete and attach Form 8801 (PDF), Credit for Prior Year Minimum Tax - Individuals, Estates, and Trusts.
Topic 556 - Alternative Minimum Tax
Alternative Minimum Tax exemptions for 2010 and 2011
The exemption amounts for 2010 are $47,450 for individual taxpayers, $72,450 for married taxpayers filing jointly and surviving spouses, and $36,225 for married couples filing separately.
For 2011 they are $48,450 for individual taxpayers, $74,450 for married taxpayers filing jointly and surviving spouses, and $37,225 for married couples filing separately.
Read more about it here.
For 2011 they are $48,450 for individual taxpayers, $74,450 for married taxpayers filing jointly and surviving spouses, and $37,225 for married couples filing separately.
Read more about it here.
AMT Assistant
Complete Form 6251 if you received or claimed one or more of the items listed on the Qualification Information list below you must fill out Form 625.
AMT Assistant Link
AMT form 625
Instruction for the form 625
Fill this form out in order to find out if you are required to pay the Alternative Minimum Tax (AMT).
Qualification Information
Did you receive or claim any of the following items in this tax year?
Accelerated Depreciation
Stock by exercising an incentive stock option and you did not dispose of the stock in the same year
Tax exempt interest from private activity bonds
Intangible drilling, circulation, research, experimental or mining costs
Amortization of pollution-control facilities or depletion
Income (or loss) from tax-shelter farm activities or passive activities
Income from long-term contracts not figured 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
Net operating loss deduction
Alternative minimum tax adjustments from an estate, trust, electing large partnership or cooperative
Section 1202 exclusion
Any general business credit in Part I on Form 3800
Empowerment zone and renewal community employment credit
Qualified electric vehicle credit
Alternative fuel vehicle refueling property credit
Credit for prior year minimum tax
http://apps.irs.gov/app/amt2010/index.jsp?ck
AMT Assistant Link
AMT form 625
Instruction for the form 625
Fill this form out in order to find out if you are required to pay the Alternative Minimum Tax (AMT).
Qualification Information
Did you receive or claim any of the following items in this tax year?
Accelerated Depreciation
Stock by exercising an incentive stock option and you did not dispose of the stock in the same year
Tax exempt interest from private activity bonds
Intangible drilling, circulation, research, experimental or mining costs
Amortization of pollution-control facilities or depletion
Income (or loss) from tax-shelter farm activities or passive activities
Income from long-term contracts not figured 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
Net operating loss deduction
Alternative minimum tax adjustments from an estate, trust, electing large partnership or cooperative
Section 1202 exclusion
Any general business credit in Part I on Form 3800
Empowerment zone and renewal community employment credit
Qualified electric vehicle credit
Alternative fuel vehicle refueling property credit
Credit for prior year minimum tax
http://apps.irs.gov/app/amt2010/index.jsp?ck
Type of Retirement Plans
Types of Retirement Plans
Individual Retirement Arrangements (IRAs):
Traditional IRAs
Roth IRAs
Retirement Plans and Plan Features:
IRS Retirement Plans Navigator
A Web guide to help you choose a retirement plan that is right for your business. The guide also contains information and resources on maintaining plans and correcting plan errors.
IRA-Based Plans:
Payroll Deduction IRAs
Simplified Employee Pension (SEP Plans)
Savings Incentive Match Plans for Employees (SIMPLE IRA Plans)
Salary Reduction Simplified Employee Pension (SARSEP Plans)
Profit-Sharing Plans
401(k) Plans
Defined Benefit Plans
Money Purchase Plans
Employee Stock Ownership Plans (ESOPs)
Governmental Plans
403(b) Plans
457 Plans
409A Nonqualified Deferred Compensation Plans
Designated Roth Accounts
Automatic Enrollment
Resources Highlighting the Benefits and Features of Retirement Plans:
Lots of Benefits - when you set up an employee retirement plan
The route to retirement security is the right retirement plan. We’ll help you along the way!
Publication 3998, Choosing a Retirement Solution for Your Small Business
Publication 4484, Choose a Retirement Plan for Employees of Tax-Exempt and Government Entities
"Increasing Your Retirement Savings" video - IRAs as a tool to use in planning for retirement years. (1:17 min.)
Starting a SEP or SIMPLE IRA Plan video – (2:00 min.)
Fix-It Guides - Common Problems, Real Solutions
Find, fix, and avoid common mistakes in plans.
IRS National Tax Forum Presentations - Choosing and operating your plan.
This information was copied from here:
http://www.irs.gov/retirement/sponsor/article/0,,id=155347,00.html
Individual Retirement Arrangements (IRAs):
Traditional IRAs
Roth IRAs
Retirement Plans and Plan Features:
IRS Retirement Plans Navigator
A Web guide to help you choose a retirement plan that is right for your business. The guide also contains information and resources on maintaining plans and correcting plan errors.
IRA-Based Plans:
Payroll Deduction IRAs
Simplified Employee Pension (SEP Plans)
Savings Incentive Match Plans for Employees (SIMPLE IRA Plans)
Salary Reduction Simplified Employee Pension (SARSEP Plans)
Profit-Sharing Plans
401(k) Plans
Defined Benefit Plans
Money Purchase Plans
Employee Stock Ownership Plans (ESOPs)
Governmental Plans
403(b) Plans
457 Plans
409A Nonqualified Deferred Compensation Plans
Designated Roth Accounts
Automatic Enrollment
Resources Highlighting the Benefits and Features of Retirement Plans:
Lots of Benefits - when you set up an employee retirement plan
The route to retirement security is the right retirement plan. We’ll help you along the way!
Publication 3998, Choosing a Retirement Solution for Your Small Business
Publication 4484, Choose a Retirement Plan for Employees of Tax-Exempt and Government Entities
"Increasing Your Retirement Savings" video - IRAs as a tool to use in planning for retirement years. (1:17 min.)
Starting a SEP or SIMPLE IRA Plan video – (2:00 min.)
Fix-It Guides - Common Problems, Real Solutions
Find, fix, and avoid common mistakes in plans.
IRS National Tax Forum Presentations - Choosing and operating your plan.
This information was copied from here:
http://www.irs.gov/retirement/sponsor/article/0,,id=155347,00.html
How To Cut Your Alternative Minimum Tax
How To Cut Your Alternative Minimum Tax
Did you know that you're supposed to calculate your income taxes two different ways? First, you figure your tax liability under the regular tax system, which factors in preferential treatment of some income and allows tax credits for certain types of expenses. Then you calculate your taxes using the rules for the alternative minimum tax (AMT), which eliminates some tax deductions and credits. If the AMT is higher, you will be subject to taxes in addition to your regular income tax. Read on to learn more about reducing your AMT. (To continue reading about taxes, see Tax Tips For The Individual Investor.)
Read more: http://www.investopedia.com/articles/pf/07/amtbasics.asp#ixzz1ZOCKWt90
http://www.investopedia.com/articles/pf/07/amtbasics.asp#axzz1ZIafx7er
http://www.amtindividual.com/amt-tax-rates.html
Did you know that you're supposed to calculate your income taxes two different ways? First, you figure your tax liability under the regular tax system, which factors in preferential treatment of some income and allows tax credits for certain types of expenses. Then you calculate your taxes using the rules for the alternative minimum tax (AMT), which eliminates some tax deductions and credits. If the AMT is higher, you will be subject to taxes in addition to your regular income tax. Read on to learn more about reducing your AMT. (To continue reading about taxes, see Tax Tips For The Individual Investor.)
Read more: http://www.investopedia.com/articles/pf/07/amtbasics.asp#ixzz1ZOCKWt90
http://www.investopedia.com/articles/pf/07/amtbasics.asp#axzz1ZIafx7er
http://www.amtindividual.com/amt-tax-rates.html
Subscribe to:
Posts (Atom)