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Question

The IRS has sent me a letter stating that I need to submit form 6251 Z(Alternate Min Tax)based on the tax return I submitted in April. The filing of form 6251 will result in an additional $7k in taxes. If I can reduce my adjusted gross income by serveral hundered dollars, the AMT would not be needed.

Can I file an amended return, reduciing the Schedule A deductions for sales tax from actual to tax table (ie lowering initial deduction), in an effort to eliminate the necessity to file form 6251 ATM.

Submitted: 157 days and 2 hours ago.
Category: Tax
Value: $30
Status: CLOSED
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Accepted Answer

yes - you may do so - but by reducing your Schedule A deductions - you will have additional tax liabilities because your taxable income will increase.

Also adjusted gross income (AGI) is taken from the line 37 form 1040 - http://www.irs.gov/pub/irs-pdf/f1040.pdf

while itemize deduction amount from schedule A will go to the line 40 - and changing that amount will not affect AGI.

I would expect that after proposed changes your overall tax liability will increase.

 

Let me know if you need any help with reporting.

 

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Expert: LEV
Pos. Feedback: 99.3 %
Accepts: 
Answered: 6/18/2009

Tax Preparer

Taxes, Immigration, Labor Relations

157 days and 1 hours ago.

Reply

Yes you are correct that my taxlibility will go up.(in fact by $900.)

But it seems that if I have to file the 6251 my tax goes up 7K.

 

By lowering my itemized duductions by using the sales tax tables in leu of actuals

my "taxable income" will be reduced enough to eliminate AMT impact.


Can I lower my deduction after I have submitted. Is this legal and will the IRS allow?I

Accepted Answer

Yes - you may do so by filing am amended tax return - form 1040X.

But I have a feeling that you made a mistake somewhere in calculating AMT. Please verify.

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Expert: LEV
Pos. Feedback: 99.3 %
Accepts: 
Answered: 6/18/2009

Tax Preparer

Taxes, Immigration, Labor Relations

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