"AMT" is a shorthand abbreviation for the "Alternative Minimum Tax." What is the Alternative Minimum Tax then, and how does it affect Schedule D (capital gains and losses)?
Well, the AMT is a very complicated topic; in fact it's one of the most difficult things to understand in the entire field of personal income taxation. Basically, it's a parallel tax system that runs in the background (completely unnoticed by most taxpayers) simultaneously and concurrently with the regular tax system with which you are familiar. Only when AMT calculations result in a taxpayer owing more than they do in taxes under the regular system do most people even learn about the existence of the AMT. And, in fact, the vast majority of taxpayers can go their entire lives without encountering the AMT, or being actually taxed by it.
Still confused? Well, you can read more about the AMT at the following TurboTax webpage. TurboTax does a pretty decent job of explaining it there:
https://turbotax.intuit.com/tax-tools/tax-tips/IRS-Tax-Return/Alternative-Minimum-Tax--Common-Questi...
As the AMT is applied to Schedule D, capital assets (the sale of which are reported on Schedule D) can have different cost basis under the regular tax system and the AMT tax system. If you have assets with different basis for regular tax and AMT, then you would enter this data there. That is what TurboTax is referring to. If you are unaware of any differences between regular and AMT basis, then you can either not answer these AMT questions (i.e., leave blank) or enter your regular basis as your AMT basis and make them equal.
If this AMT -> Schedule D explanation still does not make sense to you, or if you just want to speak with a live tax
expert who can walk you through your TurboTax entries (including the ability to
screen-share with your computer), please feel free to contact us. We
would be happy to help you (and as a TurboTax Premier customer, the call is free to
you). Here is a link where you can create a support ticket and reach us:
https://support.turbotax.intuit.com/contact/
Thank you for posting this question.
