What is the purpose of Form 6251?

Form 6251 is specifically designed for individuals to calculate the Alternative Minimum Tax (AMT). The AMT is a parallel tax system that ensures individuals pay a minimum level of tax, regardless of any deductions or credits they may claim under the regular tax system. This form helps taxpayers identify their AMT income and any applicable exemptions.

When a taxpayer fills out Form 6251, they must make adjustments to their taxable income, such as adding back certain tax preferences and advantages that are typically excluded under the regular tax system. The completed form ultimately determines whether the taxpayer owes any AMT for the tax year.

Understanding the purpose of this form is crucial, as it affects tax liability for individuals whose income may benefit from multiple deductions and credits that could otherwise reduce their overall tax burden significantly.