Hi,
I am almost ready to file but see in my "Tax Summary" line items for both the "Alternative minimum tax" and "Tentative tax". I was under the impression I would only be paying the one that is greater? Right now my tax total is "Tentative Total" - "Total credits" + "Alternative minimum tax". Is this correct?
I am in a unique position were I am filing Form 116 with the simplified election to create the "Total credit" as all of my income Foriegn and I using Foreign Tax Credits to generate the "Total credits".
You can download your tax return after paying but before filing. Also, before paying you can view your Form 1040 and Schedules 1 through 3 by going to Tax Tools -> Tools -> View Tax Summary -> Preview My 1040.
Tentative Tax is your ordinary income tax. AMT, which flows to Schedule 2 line 1, is the amount that must be added to your ordinary income tax to make the minimum tax which you are required to pay under the circumstances. AMT is the difference between Tentative Tax and Tentative Minimum Tax.
Review your Form 6251 lines 9 through 11 and Schedule 2 line 1 to understand the meanings of these numbers.
I am using turbo tax online so I can't view the forms. Can you explain in more detail?
You can download your tax return after paying but before filing. Also, before paying you can view your Form 1040 and Schedules 1 through 3 by going to Tax Tools -> Tools -> View Tax Summary -> Preview My 1040.
Tentative Tax is your ordinary income tax. AMT, which flows to Schedule 2 line 1, is the amount that must be added to your ordinary income tax to make the minimum tax which you are required to pay under the circumstances. AMT is the difference between Tentative Tax and Tentative Minimum Tax.