If filling out the standard 1040 income-tax form seems tortuous, wait until you encounter Form 6251, which computes the alternative minimum tax. You do it after you've done the 1040, and it makes you recalculate your tax bill using a different and generally more complex set of rules. You then pay whichever amount is higher.
Mercifully, this section is 10 lines shorter this year than last. That's because 2003's form had to contend with a midyear shift in the capital-gains tax rates, says Fred Grant, director of tax content at TaxNet, an Internet-based income tax software company.
Here we walk
you through the AMT form, highlighting the portions applicable to the
greatest number of taxpayers...
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Meet the Enemy
With the number of people falling prey to the alternative minimum tax climbing fast, it may be time to familiarize yourself with Form 6251.
