Form 6251 — 2014 Tax Year Checklist
Purpose
Form 6251 calculates the Alternative Minimum Tax for individuals whose income or preferences exceed regular tax thresholds. The AMT exemption amounts for 2014 increased to $52,800 for single filers, $82,100 for married filing jointly, and $41,050 for married filing separately. These year-specific thresholds apply only to 2014 returns and determine whether AMT liability exists. The AMT sets a limit on the amount that certain tax benefits can reduce total tax liability.
Filing Requirements
You must attach Form 6251 to your return if any of the following conditions apply:
- Form 6251 line 31 exceeds line 34.
- You claim any general business credit, and either line 6 in Part I or line 25 of Form 3800 exceeds zero.
- You claim the qualified electric vehicle credit, the personal use part of the alternative fuel vehicle refueling property credit, or the credit for prior year minimum tax.
- The total of Form 6251 lines 8 through 27 is negative, and line 31 would exceed line 34 if you did not take into account lines 8 through 27.
The filing requirement thresholds for 2014 are based on Alternative Minimum Taxable Income that exceeds:
- $117,300 for single or head of household filers.
- $156,500 for married filing jointly or qualifying widow(er).
- $78,250 for married filing separately.
Part I: Alternative Minimum Taxable Income
Line 1: Starting Amount
If you filed Schedule A with Form 1040, enter the amount from Form 1040 line 41 on Form 6251 line 1. If you did not file Schedule A, enter the amount from Form 1040 line 38 on Form 6251 line 1. Form 1040 line 38 reports adjusted gross income. Form 1040 line 41 reports the amount after itemized deductions or the standard deduction.
Line 2: Medical and Dental Expenses
Complete line 2 only if you completed Schedule A line 3 by multiplying Schedule A line 2 by 7.5 percent. If you or your spouse was age 65 or older at year-end 2014, enter the smaller of Schedule A line 4 or 2.5 percent of Form 1040 line 38.
Line 3: Taxes
Enter the amount of all taxes from Schedule A line 9, except any generation-skipping transfer taxes on income distributions. Include any state and local general sales taxes from Schedule A line 5.
Line 4: Home Mortgage Interest Adjustment
Complete the Home Mortgage Interest Adjustment Worksheet to figure the amount to enter on this line. An eligible mortgage is one whose proceeds were used to buy, build, or substantially improve your main home or a second home that qualifies as a dwelling.
Line 5: Miscellaneous Deductions
Enter the amount from Schedule A line 27.
Line 6: Overall Limit on Itemized Deductions
If Form 1040 line 38 exceeds:
- $254,200 for single filers.
- $279,650 for head of household filers.
- $305,050 for married filing jointly or qualifying widow(er).
- $152,525 for married filing separately.
Enter the amount from line 9 of the Itemized Deductions Worksheet as a negative amount. If Form 1040 line 38 does not exceed the applicable threshold for your filing status, enter zero on line 6. The Pease limitation on itemized deductions applied to regular tax in 2014 but does not apply for AMT purposes.
Lines 7 Through 27: Additional Adjustments and Preferences
Complete lines 7 through 27 by entering all applicable AMT adjustments and preferences. These adjustments include tax refunds, investment interest, depletion, net operating losses, private activity bond interest, qualified small business stock, incentive stock options, property disposition, depreciation, passive activities, circulation costs, long-term contracts, mining costs, research costs, installment sales, and intangible drilling costs.
Line 28: Alternative Minimum Taxable Income
Calculate alternative minimum taxable income on line 28 by combining all amounts from lines 1 through 27. If you are married, filing separately, and your alternative minimum taxable income exceeds $242,450, consult the instructions for special phase-out rules.
Part II: Alternative Minimum Tax
Line 29: Exemption Amount
Enter the exemption amount based on your filing status:
- $52,800 for single or head of household.
- $82,100 for married filing jointly or qualifying widow(er).
- $41,050 for married filing separately.
If you were under age 24 on December 31, 2014, consult the instructions for modified exemption rules. The exemption begins to phase out when alternative minimum taxable income exceeds the threshold amounts listed in the instructions.
Line 31: Tax Computation
Calculate the amount on line 31 using one of two methods:
- If you are filing Form 2555 or Form 2555-EZ, use the special worksheet in the instructions.
- If you reported capital gain distributions on Form 1040 line 13, qualified dividends on Form 1040 line 9b, or had gains on Schedule D lines 15 and 16, complete Part III and enter the amount from line 64 on line 31.
- For all other filers with line 30 of $182,500 or less ($91,250 or less if married filing separately), multiply line 30 by 26 percent.
- For all other filers with line 30 exceeding $182,500 ($91,250 if married filing separately), multiply line 30 by 28 percent and subtract $3,650 ($1,825 if married filing separately).
Line 32: AMT Foreign Tax Credit
Enter the AMT foreign tax credit if eligible. Attach Form 1116 if required. The credit reduces the tentative minimum tax but does not create a refund.
Line 35: AMT Amount and Transfer to Form 1040
Enter the AMT amount from line 35 on Form 1040 line 45. The amount represents additional tax owed beyond regular income tax. You cannot carry the AMT forward or back to other tax years.
Part III: Tax Computation Using Maximum Capital Gains Rates
Complete Part III only if required by line 31 instructions. You must complete Part III if you reported qualified dividends on Form 1040 line 9b, capital gain distributions on Form 1040 line 13, or Schedule D gains on lines 15 and 16.
Capital Gains Rate Thresholds for 2014
The 0 percent long-term capital gains rate applies up to taxable income thresholds of:
- $36,900 for single or married filing separately.
- $49,400 for head of household.
- $73,800 for married filing jointly or qualifying widow(er).
The 15 percent rate applies to amounts above the 0 percent thresholds but below:
- $406,750 for single filers.
- $228,800 for married filing separately.
- $432,200 for head of household.
- $457,600 for married filing jointly or qualifying widow(er).
The 20 percent rate applies to amounts above the 15 percent thresholds.
2014 Tax Year Updates
The 2014 exemption amounts are $52,800 for single or head of household, $82,100 for married filing jointly or qualifying widow(er), and $41,050 for married filing separately. The 26 percent AMT rate applies to the first $182,500 of taxable excess, or $91,250 if married filing separately.
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This checklist is for educational purposes only and does not constitute tax or legal advice. Always review official IRS instructions and consult a qualified professional for guidance.
