Instructions For Form 6251 - 2008 (Page 9 of 12) in pdf

2. You were age 18 at the end of

capital are material income-producing

Line 33—Alternative

2008 and did not have earned income

factors, earned income also includes a

Minimum Tax Foreign Tax

that was more than half of your support.

reasonable allowance for compensation

Credit (AMTFTC)

3. You were a full-time student over

for personal services, but not more than

age 18 and under age 24 at the end of

30% of your share of the net profits

To see if you need to figure your

2008 and did not have earned income

from that trade or business (after

TIP

AMTFTC, fill in Form 6251, line

that was more than half of your support.

subtracting the deduction for one-half of

35, as instructed. (You will first

self-employment tax). However, the

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

need to figure your foreign tax credit for

30% limit does not apply if there are no

complete the worksheet on page 8,

the regular tax and complete Form

net profits from the trade or business. If

including lines 7 through 10, to figure

1040, line 47, or Form 1040NR, line

capital is not an income-producing

the amount to enter on Form 6251, line

44.) If the amount on line 35 is greater

factor and your personal services

30.

than or equal to the amount on line 32,

produced the business income, all of

Exception. If you filed a joint return for

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

your gross income from the trade or

2008 or neither of your parents was

line 36 and see Who Must File on page

business is considered earned income.

alive at the end of 2008, do not

1 to find out if you must attach Form

complete lines 7 through 10 of the

6251 to your return. However, even if

Line 32

worksheet on page 8. However, you still

you do not owe the AMT, you may

must complete lines 1 through 6 of the

If you claimed the foreign earned

need to complete line 33 to see if you

worksheet if Form 6251, line 29, is

have an AMTFTC carryback or

income exclusion or the housing

more than the amount shown for your

carryforward to other tax years.

exclusion on Form 2555 or Form

filing status in the middle column of the

2555-EZ, you must use the worksheet

If you made an election to claim the

chart on Form 6251, line 30.

below to figure the amount to enter on

foreign tax credit on Form 1040 (or

line 32.

Certain January 1 birthdays. If you

Form 1040NR) without filing Form

were born on January 1, 1991, you are

1116, your AMTFTC is the same as the

Form 1040NR. If you are filing Form

considered to be 18 at the end of 2008.

foreign tax credit on Form 1040, line 47

1040NR and you reported capital gain

Your exemption amount is limited only if

(or Form 1040NR, line 44). Enter that

distributions directly on Form 1040NR,

you did not have earned income that

amount on Form 6251, line 33.

line 14; you reported qualified dividends

was more than half of your support.

Otherwise, your AMTFTC is your

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

foreign tax credit refigured as follows.

If you were born on January 1, 1990,

a gain on both lines 15 and 16 of

you are considered to be 19 at the end

Step 1. Use a separate AMT Form

Schedule D (Form 1040) (as refigured

of 2008. Your exemption amount is

1116 for each separate category of

for the AMT, if necessary), complete

limited only if you were a full-time

income specified at the top of Form

Part III on page 2 of Form 6251 and

student who did not have earned

1116. Write “AMT” in the top margin of

enter the amount from line 55 on line

income that was more than half of your

each Form 1116.

32. Otherwise, do not complete Part III.

support.

When applying the separate

Instead, if Form 6251, line 31, is

If you were born on January 1, 1985,

categories of income, use the

$175,000 or less ($87,500 or less if you

you are considered to be 24 at the end

applicable AMT rate instead of the

checked filing status box 3, 4, or 5 on

of 2008. Your exemption amount is not

regular tax rate to determine if any

Form 1040NR), figure the amount to

limited.

income is “high-taxed.”

enter on line 32 by multiplying line 31

by 26% (.26). Otherwise, figure the

Line 8 of the worksheet. Earned

Step 2. If you previously made or are

amount to enter on line 32 by

income includes wages, tips, and other

making the simplified limitation election

multiplying line 31 by 28% (.28) and

amounts received for personal services

(see page 11), skip Part I and enter on

subtracting $3,500 ($1,750 if you

performed. If you are a sole proprietor

the AMT Form 1116, line 16, the same

checked filing status box 3, 4, or 5)

or a partner in a trade or business in

amount you entered on that line for the

which both personal services and

from the result.

regular tax. If you did not complete

Foreign Earned Income Tax Worksheet—Line 32

Keep for Your Records

Before you begin:

If Form 6251, line 31, is zero, do not complete this worksheet.

1. Enter the amount from Form 6251, line 31 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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 37. Complete the rest of Part III of Form 6251.

However, before completing Part III, see Forms 2555 and 2555-EZ, on page 11, to see if you must complete

Part III with certain modifications. Then enter the amount from Form 6251, line 55, 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 32. . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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