AMT question

[Catherine]

I have a question about Line 27 on Form 6251 -- Other adjustments. Jump with the bunny and it brings you to the worksheet. Line 11 of the worksheet is for adjustments due to self-employed SEP or SIMPLE plans.

The form instructions say "Figure the difference between the AMT and regular tax amount for each item." But I can't find any guidance on how to determine the "AMT and regular tax amount" for a SIMPLE contribution. The Tax Book has nothing, either. And I tried for some time to find something pertinent in CFS online research and found tons of stuff that does _not_ apply.

So, where can I find out how to determine the oft-mentioned "difference between the AMT and regular tax amount" for a SIMPLE contribution? Is it all of a regular contribution? Regular without catch-up portion? Some other portion determined with worksheets and goat entrails? Other?

TIA,

Catherine

[TAXBILLY]

I would try the AMT assistant with real numbers:

http://www.irs.gov/businesses/small/articl...=150703,00.html

After all, as the page says: "this is a simple test ..." Hah!

taxbilly

[Catherine]

I would try the AMT assistant with real numbers:

http://www.irs.gov/businesses/small/articl...=150703,00.html

After all, as the page says: "this is a simple test ..." Hah!

taxbilly

Well, that says these folks don't need the 6251, so I'll say "phew" for now. But I'd still like to know how to determine the AMT adjustment amount for SEPs and SIMPLEs -- I have several clients who use those.

It was a relatively "simple" test -- as long as you have everything but the 6251 filled out and a big enough monitor (or multiple monitors) so that you can bounce between the assistant and the forms.

Thanks.

Catherine

[TAXBILLY]

Did it give any clues as to what that adjustment would be?

taxbilly

[Catherine]

Did it give any clues as to what that adjustment would be?

taxbilly

Absolutely none whatsoever. :wacko:

[TAXBILLY]

You might want to post the question on this forum. They have a section dedicated to the AMT and there seems to be many knowledgeable people answering questions.

http://www.fairmark.com/forum/index.php

taxbilly

[Lion EA]

And, please post when you know more. I have a high-income client who started a Simple and will probably be in during February.

[kcjenkins]

I have a question about Line 27 on Form 6251 -- Other adjustments. Jump with the bunny and it brings you to the worksheet. Line 11 of the worksheet is for adjustments due to self-employed SEP or SIMPLE plans.

The form instructions say "Figure the difference between the AMT and regular tax amount for each item." But I can't find any guidance on how to determine the "AMT and regular tax amount" for a SIMPLE contribution. The Tax Book has nothing, either. And I tried for some time to find something pertinent in CFS online research and found tons of stuff that does _not_ apply.

So, where can I find out how to determine the oft-mentioned "difference between the AMT and regular tax amount" for a SIMPLE contribution? Is it all of a regular contribution? Regular without catch-up portion? Some other portion determined with worksheets and goat entrails? Other?

TIA,

Catherine

Reread the fist paragraph of the section of the instructions, on page 7, and you will see that the adjustment is just if the Simple deduction would have been different based on AMT AGI. Not a common problem, but to be considered whenever you have AMT and SIMPLE.

[Catherine]

Reread the fist paragraph of the section of the instructions, on page 7, and you will see that the adjustment is just if the Simple deduction would have been different based on AMT AGI. Not a common problem, but to be considered whenever you have AMT and SIMPLE.

Thank you, KC!

I read the bleeping thing five times and missed that bit.

Catherine