#Good news! The IRS has extended the tax deadline to April 18th! As long as you submit your federal return by midnight on 4/18/2018, you won't be considered a late filer for your federal return. Direct debit tax payments that are submitted with your federal return (or on the IRS website) by 4/18 are also considered timely filed ×

What are some ways I can minimize the AMT in the future?

Itemized deductions instead of using the standard deduction

If you owe AMT, you may be able to lower your total tax (regular tax plus AMT) by claiming itemized deductions on Form 1040, even if your total itemized deductions are less than the standard deduction. When calculating AMT, the standard deduction isn’t allowed. So if you took it on your regular return, it is added back to your income. If you claim the standard deduction on your Form 1040, you can’t claim itemized deductions for the AMT. If you can itemize deductions, some of those deductions can reduce your income for AMT purposes. Though, some itemized deductions have limits for AMT purposes. For more information, see IRS Form 6251 Instructions.

Contribute to a 401k retirement plan

Contributions to a qualified retirement account, like a 401(k) or traditional IRA, can reduce your taxable income. Reducing your taxable income may help reduce your AMT liability. Refer to the IRS topic on Retirement Contributions here to find out the maximum amount you can contribute each year.

Don’t bunch up tax payments

Prepaying your property taxes can be a great tax advantage for regular tax purposes. However, think twice before prepaying if you think you may be subject to AMT for the upcoming year. The property tax deduction could be disallowed by the AMT.

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