How to Calculate AMT (Alternative Minimum Tax)

[mslatinlady]

Regarding AMT (Alternative Minimum Tax).

I live in California.

I entered all information in my return. I entered my itemized deductions, but Turbotax told me that the Standard Deduction was best for me. Then the “Other Tax Situations” page popped up. Is Turbotax supposed to calculate whether I am subject to AMT ?  Why didn’t it just go ahead and calculate whether AMT applies to me it PRIOR to that AMT section on Other Tax Situations ?  Shouldn’t Turbotax let me know whether my total income falls below the AMT threshold for the tax year prior to this?  Because once I opened up the Other Tax Situation AMT section, my total income showed up but there was a little trash can icon next to it so I didn’t know what to do, whether to just bypass this section or click on the little trash can. I had to go to the IRS website to ask the question “what is the income amount that triggers AMT for 2021”.   I learned that the AMT for a single filer for 2021 is triggered once the total income exceeds $73,600.  So since my total income is below this, I figured that the AMT does not apply to me. So basically, shouldn’t Turbotax let me know whether I’m subject to AMT prior to getting to that AMT question and then that little trash can popping up?? 
Can someone please explain this to me ???
Thanks and blessings…

[AmyC]

Yes, Turbo Tax will calculate AMT for those affected. The program would rather provide you too many options and reminders rather than not enough. Some people need to file the AMT and forget or don't know it. Company stock sales are common. It is just a caution. When the Other Tax Situations screen pops up with the AMT, there is a Learn More link. It has many links to everything you need to know, the very last link goes to the page with income thresholds.

I am sorry you found this frustrating.

[mslatinlady]

So what is that little trash can icon next to my income amount for then ?  (That's what confused me, I didn't know what the trash can was for.    Did it show up because Turbotax calculated that my income is below the amount that triggers AMT?  If someone could please explain the little trash can icon, that would be great !!  Blessings

[RobertB4444]

@mslatinlady  The trash can will delete all of the information that you have entered there.  If you made an error and needed to re-enter your W2, for instance, you would click the trash can and then do it over.

[mslatinlady]

Well, I think the Turbotax program should explain why that trash can is there because it's very confusing for those of us who aren't tax experts.  Don't you think that would be helpful?  But I do thank you for your response.  I'll try to remember this next year.  Have a blessed day !!!