AMT Assistant - IRS Launches Online Help Tool

[jeffrey]

One of the most frustrating aspect for many middle to upper income earners when filing taxes is figuring out whether or not you must pay the alternative minimum tax (AMT). The IRS has developed a new online tool to help individual taxpayers determine if they potentially have to pay the AMT. Basically what the Internal Revenue Service (IRS) has done is automated the worksheet that you needed to fill out by hand and by automating this process "... estimates most taxpayers can make entries and get an answer in five to 10 minutes."

The new tool is aimed at people who still file their returns by mail since most tax and e-file software automatically computes AMT liability.




“The alternative minimum tax causes a lot of hair pulling for millions of taxpayers each year. This new tool will help people understand if they have to pay or not,” said Mark W. Everson, IRS Commissioner. “This is part of the IRS effort to improve customer service and reduce return preparation time for taxpayers.”

In order to get the results from the new tool, taxpayers must complete a draft 1040 through line 44 and have that form available to input numbers to the AMT Assistant. The IRS claims the information provided is anonymous and will be used only for purposes of determining AMT liability. The IRS says, "It will not be shared, stored or used in any other way, nor can it be used to identify the individual who enters it."

You can see the new AMT Assistant at the IRS website .