Instructions For Form 6251 - 2011 (Page 10 of 13) in pdf

If condition 1, 2, or 3 applies to you,

your self-employment tax). However,

Line 32—Alternative

complete the Exemption Worksheet,

the 30% limit does not apply if there are

Minimum Tax Foreign Tax

including lines 7 through 10, to figure

no net profits from the trade or

Credit (AMTFTC)

the amount to enter on Form 6251, line

business. If capital is not an

29.

income-producing factor and your

To see if you need to figure your

personal services produced the

Exception. If you filed a joint return for

TIP

AMTFTC, fill in Form 6251, line

business income, all of your gross

2011 or neither of your parents was

34, as instructed. (You will first

income from the trade or business is

alive at the end of 2011, do not

need to figure your foreign tax credit for

considered earned income.

complete lines 7 through 10 of the

the regular tax and complete Form

Exemption Worksheet. However, you

Line 31

1040, line 47, or Form 1040NR, line

still must complete lines 1 through 6 of

45.) If the amount on line 34 is greater

If you claimed the foreign earned

the worksheet if Form 6251, line 28, is

than or equal to the amount on line 31,

income exclusion, housing exclusion, or

more than the amount shown for your

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

housing deduction on Form 2555 or

filing status in the middle column of the

line 35 and see Who Must File, earlier,

Form 2555-EZ, you must use the

chart on Form 6251, line 29.

to find out if you must attach Form 6251

worksheet below to figure the amount

Certain January 1 birthdays. If you

to your return. However, even if you do

to enter on line 31.

were born on January 1, 1994, you are

not owe the AMT, you may need to

Form 1040NR. If you are filing Form

considered to be 18 at the end of 2011.

complete line 32 to see if you have an

1040NR and you reported capital gain

Your exemption amount is limited only if

AMTFTC carryback or carryforward to

distributions directly on Form 1040NR,

you did not have earned income that

other tax years.

line 14; you reported qualified dividends

was more than half of your support.

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

If you made an election to claim the

If you were born on January 1, 1993,

a gain on both lines 15 and 16 of

foreign tax credit on Form 1040 (or

you are considered to be 19 at the end

Form 1040NR) without filing Form

Schedule D (Form 1040) (as refigured

of 2011. Your exemption amount is

for the AMT, if necessary), complete

1116, your AMTFTC is the same as the

limited only if you were a full-time

Part III of Form 6251 and enter the

foreign tax credit on Form 1040, line 47

student who did not have earned

amount from line 54 on line 31. All

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

income that was more than half of your

other Form 1040NR filers, do not

amount on Form 6251, line 32.

support.

Otherwise, your AMTFTC is your

complete Part III. Instead, if Form 6251,

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

foreign tax credit refigured as follows.

If you were born on January 1, 1988,

less if you checked filing status box 3,

Step 1. Use a separate AMT Form

you are considered to be 24 at the end

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

1116 for each separate category of

of 2011. Your exemption amount is not

amount to enter on line 31 by

income. Write “AMT” and specify the

limited.

multiplying line 30 by 26% (.26).

category of income in the top margin of

Line 8 of the worksheet. Earned

Otherwise, figure the amount to enter

each Form 1116.

income includes wages, tips, and other

on line 31 by multiplying line 30 by 28%

When applying the separate

amounts received for personal services

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

categories of income, use the

performed. If you are a sole proprietor

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

applicable AMT rate instead of the

or a partner in a trade or business in

from the result.

regular tax rate to determine if any

which both personal services and

income is “high-taxed.”

capital are material income-producing

factors, earned income also includes a

Step 2. If you previously made or are

reasonable allowance for compensation

making the simplified limitation election,

for personal services, but not more than

skip Part I and enter on the AMT Form

30% of your share of the net profits

1116, line 17, the same amount you

from that trade or business (after

entered on that line for the regular tax.

subtracting the deduction for part of

If you did not complete Form 1116 for

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)