Instructions for Form 6251- 2013 Tax Year Checklist
Form 6251 is used to determine whether the alternative minimum tax changes the total tax
reported on a 2013 tax return after recalculating taxable income under separate adjustment rules. The alternative minimum tax generally applies only when the tentative minimum tax exceeds the regular tax under the IRS Form 6251 comparison method.
For 2013, AMT exemptions were indexed for inflation and depend on filing status, including married filing jointly and married filing separately. This guide follows the 2013 tax law and does not blend later changes under the Tax Cuts and Jobs Act.
Purpose And Scope For The 2013 Tax Year
The alternative minimum tax operates as a parallel tax system that limits certain tax benefits when preference items or timing differences reduce regular tax beyond what federal tax law allows. It often affects high-income taxpayers with capital gains, incentive stock options, or interest from specified private activity bonds.
This checklist focuses on Form 6251 sequencing, AMT exemptions, and AMT tax rates that apply to the 2013 tax year. It also supports clean tax return documentation by tying adjustments to worksheets, schedules, and IRS forms.
Step-By-Step Checklist For Completing The Form
Step 1: Determine whether Form 6251 must be attached
Review the 2013 tax return for AMT indicators such as large state and local taxes, significant itemized deductions, or preference items that can increase tentative minimum tax. Use tax software as a check, but rely on the “Who Must File” logic in IRS Form 6251 instructions.
Gather the draft Form 1040 and supporting schedules that drive taxable income, especially
Schedule A and Schedule D when itemized deductions or capital gains are present. Add any incentive stock option records and private-activity bond statements so the alternative minimum tax review is fully supported.
Step 2: Identify the correct starting amount
Follow the Form 6251 line 1 instruction to pull the proper starting figure from Form 1040 based on whether Schedule A was filed. Entering the wrong starting amount for taxable income can distort the alternative minimum taxable income in the first calculation step.
Confirm the base figure matches the final taxable income used for regular tax, not adjusted gross income or a preliminary worksheet total. Keep a note showing the exact Form 1040 line used so the entry is traceable for tax returns.
Step 3: Adjust itemized deductions that change treatment
Add back deductions that are not allowed under the alternative minimum tax system, especially state and local income taxes reported through Schedule A. Review miscellaneous itemized deductions carefully because many are disallowed under AMT rules for the 2013 tax year.
Refigure mortgage interest when the loan purpose or tracing rules require an AMT worksheet computation under IRS Form 6251 instructions. Keep the worksheet with the return file because the change can affect both tentative minimum tax and AMT exemptions through AMTI.
Step 4: Add preference items and timing differences
Enter only items that apply, including accelerated depreciation adjustments, net operating loss differences, and interest income from specified private activity bonds reported on annual statements. Preference items should be tied to a tax form source, such as a K-1 package or bond reporting detail.
If incentive stock options were exercised, compute the adjustment using the required spread method and keep supporting broker records with the return workpapers. This adjustment is a common alternative minimum tax trigger and often changes tax liability even when the regular tax remains unchanged.
Step 5: Compute alternative minimum taxable income
Combine the starting figure with all applicable adjustments to compute the alternative minimum taxable income before subtracting the exemption amount. Recheck that the schedule, worksheet, or IRS forms documentation point to support every entry.
Confirm additions and subtractions were applied with the correct sign so a data-entry error does not reverse AMTI. If tax software is used, compare the software details with the manual line-by-line support to ensure tax returns are accurate.
Step 6: Apply the 2013 AMT exemption and phase-out rules
Use the exemption amount tied to the correct filing status and enter it on the exemption line specified by IRS Form 6251 for the 2013 tax year. Apply exemption phaseout thresholds when
AMTI exceeds the level that reduces AMT exemptions under the printed rules.
Verify that the exemption computation is complete before applying AMT tax rates, so taxable income under AMT is not overstated. Keep a short note showing which filing status table was used, especially for married filing jointly versus married filing separately.
Step 7: Calculate tentative minimum tax using AMT tax rates
Apply the 26% and 28% AMT tax rates using the bracket and breakpoint structure shown in the
2013 instructions. Confirm the correct tax rate tier was applied because AMT tax rates depend on the taxable base after exemptions.
If capital gains or qualified dividends are present, use the special computation worksheet required for the alternative minimum tax so that preferential rates are handled correctly. Retain that worksheet with the return because it supports the final tentative minimum tax amount.
Step 8: Compare the tentative minimum tax to the regular tax
Use the form’s comparison step to subtract regular tax from tentative minimum tax using the defined regular tax reference amount for 2013. Avoid substituting a personal definition of regular tax because IRS Form 6251 specifies how the comparison is made.
If the result is zero or negative, no alternative minimum tax is owed, and tax liability remains based on regular tax rules. If the result is positive, the difference is the alternative minimum tax that must be reported on the return.
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Step 9: Report any alternative minimum tax on Form 1040
Transfer any positive alternative minimum tax amount from Form 6251 to the designated line on
Form 1040 for the 2013 tax year. Attach IRS Form 6251 to the return package to support the reported tax liability and any related tax credit limitations.
Confirm that the transferred amount flows into the total tax correctly and matches the final line on Form 6251 after any permitted adjustments. Save a final copy of the completed tax forms for records and future tax return reference.
Reporting And Recordkeeping After Completion
Any alternative minimum tax computed on Form 6251 increases total tax liability only when it exceeds regular tax under the 2013 tax law and the form’s comparison step. This outcome should be checked for consistency with filing status and any AMT exemptions applied.
Maintain documentation for each adjustment, including Schedule A, Schedule D, depreciation schedules, incentive stock option records, and private-activity bond reporting details. These records support later credit tracking and help a tax professional validate the computation if questioned.
If you’re missing tax documents or want to ensure the numbers you enter match IRS records, we can help.
