You can fill out Internal Revenue Service Form 6521 by entering adjusted gross income after itemized deductions, medical deductions, taxes, interest on home equity, miscellaneous itemized deductions and any investment interest for the tax year, explains TurboTax. Include the amounts for state tax refund, depletion, net operating losses, incentive stock options and alternative tax net operating loss deductions as necessary.Continue Reading
Form 6521 is the Alternative Minimum Tax form intended for use by taxpayers who claim specific tax benefits in order to ensure that the wealthy don't exploit loopholes in tax law, notes TurboTax. The law indexes exemptions to inflation in order to treat citizens equitably. The correct exemption amount varies depending on year and filing status: single taxpayers, married taxpayers filing jointly, married and filing separately, and head of household. Using tax-preparation software sometimes obviates the need for filling out this form. The IRS website has an Alternative Minimum Tax tool to determine whether filing the form is necessary, but as of 2015, it does not calculate the amount due.
You can prepare for the Alternate Minimum Tax and reduce tax liability by occasionally using tax-preparation software throughout the tax year, according to TurboTax. Checking for general business credits on the last year's tax return to see if they apply to the current tax return also helps when planning ahead.Learn more about Taxes