Form 6251: Alternative Minimum Tax - Individuals

AAA

DEFINITION of 'Form 6251: Alternative Minimum Tax - Individuals'

A tax form distributed by the Internal Revenue Service (IRS) and used to determine the amount of alternative minimum tax (AMT) that a tax payer may owe. Some taxpayers with higher incomes can claim certain deductions that allow them to reduce their regular tax obligation, and the AMT is designed to set an upper limit on how much that deduction can be. Only if there is AMT owed will Form 6251 have to be attached to Form 1040.

INVESTOPEDIA EXPLAINS 'Form 6251: Alternative Minimum Tax - Individuals'

Form 1040 also contains a worksheet that allows a taxpayer to determine whether AMT is owed, but it only provides basic computations. Form 6251 is more detailed and will give a more accurate answer, and simply completing it does not mean that it has to be filed.

RELATED TERMS
  1. 1040 Form

    The standard Internal Revenue Service (IRS) form that individuals ...
  2. Alternative Minimum Tax - AMT

    A tax calculation that adds certain tax preference items back ...
  3. Income Tax

    A tax that governments impose on financial income generated by ...
  4. Internal Revenue Service - IRS

    A United States government agency that is responsible for the ...
  5. Tax Fairness

    A tax platform based on an ideal that aims to create a system ...
  6. Form 8949

    An Internal Revenue Service form implemented in tax year 2011 ...
Related Articles
  1. Tax Tips For The Individual Investor
    Retirement

    Tax Tips For The Individual Investor

  2. How To Appeal Your IRS Audit
    Taxes

    How To Appeal Your IRS Audit

  3. Surviving The IRS Audit
    Taxes

    Surviving The IRS Audit

  4. How To Cut Your Alternative Minimum ...
    Taxes

    How To Cut Your Alternative Minimum ...

comments powered by Disqus
Hot Definitions
  1. Correlation

    In the world of finance, a statistical measure of how two securities move in relation to each other. Correlations are used ...
  2. Letter Of Credit

    A letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount. ...
  3. Due Diligence - DD

    1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to ...
  4. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  5. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  6. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
Trading Center