Tax Questions - How to Reduce the Alternative Minimum Tax ?
» Using AMTIndividual
» Can I Use AMTIndividual If…
» Do I Need AMTIndividual If…
» Subscribing to AMTIndividual
» Technical Details & Troubleshooting
Using AMTIndividual
How can AMTIndividual help me?
AMTIndividual will show you how to pay less alternative minimum tax (AMT). It analyzes your latest tax return and pinpoints exactly what is causing you to fall into the AMT trap. It provides AMT reduction strategies tailored to your unique financial situation. And throughout the year, you can update it or test out financial decisions to find the optimal scenario—the right mix of income and expenses to minimize your AMT and your overall tax burden. And along the way, it will explain what it is and how it differs from the regular income tax so you finally have a good grasp on this wily monster.
What do I actually get with AMTIndividual?
In short, you’ll get…
- A fast and easy dual-tax calculator to figure both your regular income and AMT taxes.
- A thorough summary of which items are tripping the trigger and why, as well an explanation of how each of your triggers are treated differently by the income and AMT tax.
- Personalized strategies to soften the AMT blow, with customized examples so you can see the strategies in action and detailed guidance on implementing them.
- A planning model so you can find the best path for cutting your taxes and know how an option will affect your AMT and regular tax burden before you make a decision.
- Unlimited access to the program through January 15 of next year, so you can close out the year and make your January 15 estimated tax payment (if necessary).
- The comfort of knowing you won’t be getting ambushed by a big AMT bill next April.
How do I find out why I had to pay AMT last year?
Just spend 5-10 minutes entering some items from your last tax return. AMTIndividual will analyze what you enter and tell you what triggered the AMT. You’ll also be able to see side-by-side how the different tax rate schedules and exemption amounts used by the regular income tax and the AMT affected the results.
Are the strategies hard to implement?
No, they’re not. In fact, it may be as easy as paying your state taxes in January instead of December.
And all the strategies are explained in plain English, with commentary and detailed instructions to enhance your understanding. The program will also give you examples of the strategies in action, which are specific to your tax filing status.
How does the planning model work?
The tax information you filled in from your last tax return is automatically carried over to the planning model—just change the numbers to reflect the coming year and you’ll instantly see what you can expect to pay in both regular income tax and AMT. It’ll also give you recommendations for reducing your AMT.
It’s also easy to update your income or relevant expenses throughout the year. And best of all, it includes a “what if” section to help you make tax-savvy financial decisions. Just change a few numbers to run different scenarios to see the impact each will have on your tax situation. So you can always choose the optimal path for your situation.
How customized is it? What about my state and local taxes?
These are not hypothetical scenarios—all of our calculations and strategies are based on the numbers you input. And it’s customized all the way down to your state and local taxes—which are an important factor in the AMT. The program incorporates the state, local and property tax information from your jurisdiction so your recommended strategies will be automatically tailored to your location.
What if the government makes tax changes during the year?
The good news is you don’t have to worry about it. We’ll watch for any new tax-related federal and state laws or regulations and update the program immediately. So the next time you log in, the most current information will already be incorporated into the software. We’ll also send you notifications of those changes so you’ll know what to expect and how they may impact you.
» Using AMTIndividual
» Can I Use AMTIndividual If…
» Do I Need AMTIndividual If…
» Subscribing to AMTIndividual
» Technical Details & Troubleshooting
Can I Use AMTIndividual If…
…I’m married but file my taxes separately?
All filing statuses are covered in AMTIndividual—single, married filing jointly, head of household, married filing separately, and widow(er). Everyone can use the program to reduce their AMT.
…I don’t know anything about accounting?
Yes, you can. You don’t need any tax or finance background to use AMTIndividual. Simply follow the program’s prompts and it will do all the calculations and analysis for you. The program will explain the AMT and strategies in plain language and provide lots of examples to give you a better understanding.
…I use a fiscal year instead of a calendar year?
That’s fine. The planning model gives you a 12-month view for whichever time period you use.
» Using AMTIndividual
» Can I Use AMTIndividual If…
» Do I Need AMTIndividual If…
» Subscribing to AMTIndividual
» Technical Details & Troubleshooting
Do I Need AMTIndividual If…
…If I’m already using tax preparation software like TurboTax®?
If you’re already paying the AMT or think you’re in danger of paying the AMT next year, yes, you will need both. While typical tax software calculates the AMT you owe, it won’t tell you why you owe it.
The planning strategies AMTIndividual suggests are focused exclusively on the alternative minimum tax. But it will calculate and show you the impact of those strategies on both the regular income tax and the AMT. So you really do need both to get the full planning picture.
…I have an accountant?
Most likely, yes. First, because the AMT is so complex, many tax professionals only focus on planning for the regular income tax. But as we mentioned before, strategies to lower your regular income tax can end up increasing your AMT—and the IRS makes sure you pay the higher of the two.
Second, the program gives you the convenience of updating your information and adjusting your AMT reduction strategies as things change throughout the year, without having to sit down each time with your accountant. If you wait until your once-a-year tax preparation meeting, it’s too late to do anything about that year’s taxes.
» Using AMTIndividual
» Can I Use AMTIndividual If…
» Do I Need AMTIndividual If…
» Subscribing to AMTIndividual
» Technical Details & Troubleshooting
Subscribing to AMTIndividual
Why now should I sign up now? It seems like we’ve just put last year behind us.
It’s too late to do tax planning when you’re preparing to file your taxes. So the sooner you subscribe, the sooner you can start implementing strategies to save on your tax bill—and the more options you will have for doing so.
You’ll also be able to use the program as financial decisions arise throughout the year, so you can evaluate the potential tax impact and avoid costly mistakes.
How long is the AMTIndividual subscription good for?
You’ll get unlimited use of the program through January 15 of next year. That should give you plenty of time to complete the calendar year and forecast the last estimated tax payment on January 15, if necessary.
What if AMTIndividual doesn’t end up saving me any money?
We offer a 100% money back guarantee throughout your subscription period. Take until January 15 of next year, to try out the entire AMTIndividual program. If you make an honest effort to use it and find it doesn’t give you enough ideas to help you save at least what you paid for the program, just contact us and we'll promptly refund your money.
What happens to my data at the end of the year? Do I have to start all over again?
No, if you renew, your data will remain stored on our secure server and your account will remain open so you can continue to access what you’ve already done.
» Using AMTIndividual
» Can I Use AMTIndividual If…
» Do I Need AMTIndividual If…
» Subscribing to AMTIndividual
» Technical Details & Troubleshooting
Technical Details & Troubleshooting
What do I need to run AMTIndividual?
AMTIndividual is a web-based program, so there’s nothing to download onto your computer. As long as you have a computer with an internet connection, you can log on to the program.
Other than that, you’ll just need your last tax return the first time you log on. Everything will be done and saved on our secure servers.
Is my data safe?
Yes, all data and reports are stored on our secure servers that are constantly monitored by McAfee. Your data can only be accessed with your unique user name and password. As a TRUSTe certified site, we have undergone a rigorous review process to assess the accuracy of privacy disclosures and security measures for data collection and usage—and this compliance is monitored regularly.
How do I log into AMTIndividual?
When you subscribe, you’ll simultaneously create a member account with a login and password. So as soon as you’ve completed your purchase, you can sign on and begin using AMTIndividual.
What if I forget my login or password?
You can reset it online. Just click “I forgot my login or password” and follow the prompts.
Find out more about AMTIndividual
