AMT

[untuit]

I've never paid attention to alternative minimum tax. Under what circumstances would I choose AMT, if that's how it works.

Right now the AMT page looks like this (not the real numbers)

Alternative Minimum Taxable Income 250,000

Tentative Minimum Tax 30,000
Regular Tax 40,000

Alternative Minimum Tax 0.00

From what I've read, if the AMT is greater than the normally calc'd tax amount, I would be required to pay the AMT amount. Is that a correct understanding? If so it means it's irrelevant for this return.

[MonikaK1 · Accepted solution]

See this TurboTax tips article for more information about the Alternative Minimum Tax and the different income items that can require TurboTax to calculate a separate AMT amount. You may need to pay the AMT if your Tentative Minimum Tax exceeds your regular tax. 

Certain deductions, like state and local taxes, aren't allowed for AMT calculation purposes.