Instructions For Form 6251 - Alternative Minimum Tax-Individuals

filing status in the middle column of the

Form 2555-EZ, you must use the

If you made an election to claim the

chart on Form 6251, line 29.

worksheet below to figure the amount

foreign tax credit on Form 1040 (or

to enter on line 31.

Form 1040NR) without filing Form

Certain January 1 birthdays. If you

1116, your AMTFTC is the same as the

were born on January 1, 1994, you are

Form 1040NR. If you are filing Form

foreign tax credit on Form 1040, line 47

considered to be 18 at the end of 2011.

1040NR and you reported capital gain

(or Form 1040NR, line 45). Enter that

Your exemption amount is limited only if

distributions directly on Form 1040NR,

amount on Form 6251, line 32.

you did not have earned income that

line 14; you reported qualified dividends

Otherwise, your AMTFTC is your

was more than half of your support.

on Form 1040NR, line 10b; or you had

foreign tax credit refigured as follows.

a gain on both lines 15 and 16 of

If you were born on January 1, 1993,

Schedule D (Form 1040) (as refigured

you are considered to be 19 at the end

Step 1. Use a separate AMT Form

for the AMT, if necessary), complete

of 2011. Your exemption amount is

1116 for each separate category of

Part III of Form 6251 and enter the

limited only if you were a full-time

income. Write “AMT” and specify the

amount from line 54 on line 31. All

student who did not have earned

category of income in the top margin of

other Form 1040NR filers, do not

income that was more than half of your

each Form 1116.

complete Part III. Instead, if Form 6251,

support.

line 30, is $175,000 or less ($87,500 or

When applying the separate

If you were born on January 1, 1988,

less if you checked filing status box 3,

categories of income, use the

you are considered to be 24 at the end

4, or 5 on Form 1040NR), figure the

applicable AMT rate instead of the

of 2011. Your exemption amount is not

amount to enter on line 31 by

regular tax rate to determine if any

limited.

multiplying line 30 by 26% (.26).

income is “high-taxed.”

Line 8 of the worksheet. Earned

Otherwise, figure the amount to enter

income includes wages, tips, and other

Step 2. If you previously made or are

on line 31 by multiplying line 30 by 28%

amounts received for personal services

making the simplified limitation election,

(.28) and subtracting $3,500 ($1,750 if

performed. If you are a sole proprietor

skip Part I and enter on the AMT Form

you checked filing status box 3, 4, or 5)

or a partner in a trade or business in

1116, line 17, the same amount you

from the result.

which both personal services and

entered on that line for the regular tax.

capital are material income-producing

Line 32—Alternative

If you did not complete Form 1116 for

factors, earned income also includes a

the regular tax and you previously

Minimum Tax Foreign Tax

reasonable allowance for compensation

made or are making the simplified

Credit (AMTFTC)

for personal services, but not more than

limitation election, complete Part I and

30% of your share of the net profits

lines 15 through 17 of the AMT Form

To see if you need to figure your

from that trade or business (after

1116 using regular tax amounts.

AMTFTC, fill in Form 6251, line

subtracting the deduction for part of

TIP

If the election does not apply,

your self-employment tax). However,

34, as instructed. (You will first

complete Part I using only income and

the 30% limit does not apply if there are

need to figure your foreign tax credit for

deductions that are allowed for the

the regular tax and complete Form

no net profits from the trade or

1040, line 47, or Form 1040NR, line

AMT and attributable to sources outside

business. If capital is not an

45.) If the amount on line 34 is greater

the United States. If you have any

income-producing factor and your

foreign source qualified dividends or

personal services produced the

than or equal to the amount on line 31,

foreign source capital gains (including

business income, all of your gross

you do not owe the AMT. Enter -0- on

any foreign source capital gain

line 35 and see Who Must File, earlier,

income from the trade or business is

to find out if you must attach Form 6251

distributions) or losses, use the

considered earned income.

to your return. However, even if you do

instructions under Step 3 to determine

Line 31

whether you must make adjustments to

not owe the AMT, you may need to

those amounts before you include the

If you claimed the foreign earned

complete line 32 to see if you have an

amounts on line 1a or line 5 of the AMT

income exclusion, housing exclusion, or

AMTFTC carryback or carryforward to

Form 1116.

housing deduction on Form 2555 or

other tax years.

Foreign Earned Income Tax Worksheet—Line 31

Keep for Your Records

Before you begin:

If Form 6251, line 30, is zero, do not complete this worksheet.

1. Enter the amount from Form 6251, line 30 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2. Enter the amount from your (and your spouse’s if filing jointly) Form 2555, lines 45 and 50, or Form 2555-EZ,

line 18 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3. Add lines 1 and 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

}

4. Tax on the amount on line 3.

•

If you reported capital gain distributions directly on Form 1040, line 13; or you reported qualified dividends

on Form 1040, line 9b; or you had a gain on both lines 15 and 16 of Schedule D (Form 1040), enter the

amount from line 3 of this worksheet on Form 6251, line 36. Complete the rest of Part III of Form 6251.

However, before completing Part III, see Forms 2555 and 2555-EZ, later, to see if you must complete Part III

with certain modifications. Then enter the amount from Form 6251, line 54, here.

•

All others: If line 3 is $175,000 or less ($87,500 or less if married filing separately), multiply line 3 by 26%

(.26). Otherwise, multiply line 3 by 28% (.28) and subtract $3,500 ($1,750 if married filing separately) from the

result.

5. Tax on the amount on line 2. If line 2 is $175,000 or less ($87,500 or less if married filing separately), multiply line

2 by 26% (.26). Otherwise, multiply line 2 by 28% (.28) and subtract $3,500 ($1,750 if married filing separately)

from the result. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

6. Subtract line 5 from line 4. Enter the result here and on Form 6251, line 31. . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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Instructions for Form 6251 (2011)