What is a 6251 form?
John Johnson
Updated on March 14, 2026
More In Forms and Instructions Use Form 6251 to figure the amount, if any, of your alternative minimum tax (AMT). The AMT applies to taxpayers who have certain types of income that receive favorable treatment, or who qualify for certain deductions, under the tax law.
How do I know if AMT applies to me?
You only have to worry about the AMT if your adjusted gross income exceeds the exemption. If you make that much income or more, that’s the AMT taxable income. You may have to calculate your alternative minimum taxable income and pay the higher tax. You can do so on Form 6251.
What is AMT example?
Example: You are a single taxpayer who earned $618,400 for 2020. Therefore, your exemption amount is reduced by ($618,400 – $518,400) × . 25 = $25,175. So your AMT exemption would be equal to $72,900 – $25,175 = $47,725.
How is the AMT 2020 calculated?
The AMT exemption amount for certain individuals under 24 equals their earned income plus $7,900. Multiply what’s left by the appropriate AMT tax rates. The AMT has two tax rates: 26% and 28%. (Compare these to the seven federal income tax brackets, ranging from 10% to 37%.)
Do I need to file Form 6251?
You may need to file Form 6251 if you have specific AMT items. If you need to report any of the following items on your tax return, you must file Form 6251, Alternative Minimum Tax, even if you do not owe AMT. Home mortgage interest on a loan that you did not use to buy, build or improve your home.
Who pays the alternative minimum tax?
Taxpayers pay the higher of their tax calculated under regular income tax rules or under the rules for the alternative minimum tax (AMT). In 2017—before enactment of the Tax Cuts and Jobs Act (TCJA)— the 39.6 percent top rate under the regular income tax was much higher than the 28 percent top statutory AMT rate.
Who pays alternative minimum tax?
Does Turbo Tax calculate AMT automatically?
If the AMT is more than the tax calculated under the regular way, then the AMT in excess of your regular tax is reported on line 45 of form 1040. Most tax-preparation software programs such as Intuit’s (INTU) TurboTax, will automatically complete the Form 6251 and calculate the AMT for you.
