Form 6251 (2019) — Alternative Minimum Tax—Individuals
Purpose
Form 6251 calculates the alternative minimum tax for individuals whose income and deductions exceed specified thresholds. The AMT exemption amounts for 2019 are $71,700 for single filers, $111,700 for married taxpayers filing jointly, and $55,850 for married taxpayers filing separately.
These amounts are adjusted annually for inflation under standard indexing procedures established by law. Filers must determine whether AMT liability exceeds regular income tax and report any excess on Schedule 2 attached to Form 1040 or Form 1040-SR. Line 1 of Form 6251 references Form 1040 or Form 1040-SR line 11b, which shows your taxable income.
The AMT applies to taxpayers who have certain types of income that receive favorable treatment or who qualify for certain deductions under regular tax law. These tax benefits can significantly reduce regular tax for some taxpayers with higher economic incomes, and the AMT sets a limit on their use.
Filing Steps
Complete Form 1040, 1040-SR, or 1040-NR First
You must complete your primary tax return before calculating AMT. No AMT calculation is possible without a completed primary return for the 2019 tax year.
Gather Schedule A or Standard Deduction Documentation
Line 2a requires either Schedule A line 7 or Form 1040 or Form 1040-SR line 9. Schedule A line 7 includes state and local taxes, mortgage interest, and charitable contributions.
The 2019 standard deduction amounts are $12,200 for single filers, $24,400 for married filing jointly, and $18,350 for head of household. These amounts increased from 2018 levels through annual inflation adjustments. The standard deduction is not allowed for AMT calculations.
Identify and Enter All AMT Preference Adjustments
Lines 2a through 2t capture adjustments between regular tax and AMT treatment. Each adjustment reflects how specific income or deduction items receive different treatment under AMT rules compared to regular tax rules for the 2019 tax year. You must report the following adjustments:
- Taxable refunds of state and local taxes on line 2b
- Investment interest expense differences on line 2c
- Depletion variances on line 2d
- Net operating loss deductions from Schedule 1 on line 2e
- Private activity bond interest on line 2g
- Incentive stock option spread on line 2i
- Depreciation differences on line 2l
- Passive activity variances on line 2m
- Loss limitation impacts on line 2n
Apply 2019 Exemption Threshold and Phase-Out Rules
Enter the applicable exemption amount on line 5 based on your filing status. The exemption phases out at a rate of 25 cents per dollar when the alternative minimum taxable income exceeds the threshold for your filing status. Use the following amounts:
- Single filers and heads of household claim a $71,700 exemption with a phase-out beginning at $510,300 of alternative minimum taxable income.
- Married taxpayers filing jointly and qualifying widowers claim a $111,700 exemption with a phase-out beginning at $1,020,600 of alternative minimum taxable income.
- Married taxpayers filing separately claim a $55,850 exemption.
Calculate Tentative Minimum Tax Using Dual Rates
The AMT rates of 26 percent and 28 percent are statutory rates established by law. The income thresholds where the higher rate applies are adjusted annually for inflation. Apply the 26 percent rate to the first $194,800 of line 6 income.
If line 6 exceeds $194,800, multiply the excess by 28 percent and subtract $3,896 from the result. Married taxpayers filing separately apply the 26 percent rate to the first $97,400 of line 6 income and subtract $1,948 when calculating the 28 percent portion.
Complete Part III if Required by Line 7
You must use the Tax Computation Using Maximum Capital Gains Rates worksheet if you reported capital gain distributions on Form 1040 or Form 1040-SR line 6. The worksheet also applies if you reported qualified dividends on line 3a or recognized gains on Schedule D lines 15 and 16 as refigured for AMT.
The worksheet applies the long-term capital gain rate structure of 0 percent, 15 percent, and 20 percent across lines 12 through 40. This part ensures that capital gains and qualified dividends receive favorable tax treatment under both regular tax and AMT calculations.
Enter Applicable Capital Gains Rate Thresholds
Line 19 specifies income thresholds for the 0 percent capital gains bracket. Line 25 specifies income ceilings for the 15 percent capital gains bracket. These threshold amounts are adjusted annually for inflation, and the three-tier rate structure of 0 percent, 15 percent, and 20 percent remains consistent across tax years.
Line 19 Thresholds (0% Rate):
- Married taxpayers filing jointly use $78,750.
- Heads of households use $52,750.
- Single filers and married taxpayers filing separately use $39,375.
Line 25 Ceilings (15% Rate):
- Married taxpayers filing jointly use $488,850.
- Heads of households use $461,700.
- Single filers use $434,550.
- Married taxpayers filing separately use $244,425.
Compare the Tentative Minimum Tax to the Regular Income Tax and Report AMT
Enter your tentative minimum tax from line 9 and your regular income tax from line 10. Line 10 requires the amount from Form 1040 or Form 1040-SR line 12a minus any Form 4972 tax, plus any amount from Schedule 2 line 3.
You owe AMT only if line 9 exceeds line 10. Report the excess amount on line 11 and transfer it to Schedule 2 of your Form 1040 or Form 1040-SR. The calculation ensures you pay at least the minimum tax amount required under AMT rules when your regular tax falls below that threshold.
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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.
