Should I even bother filling out Form 6251 (Alternative Minimum Tax) if I'm just above the exemption amount?

The AMT exemption amount is just the starting point - being over that doesn't automatically mean you'll owe AMT. Form 6251 calculates an alternative way of determining your tax liability by adding back certain deductions and adjustments that aren't allowed under AMT rules. You should definitely complete Form 6251 if you're above the exemption amount, but many people with straightforward tax situations who are just over the exemption still don't end up owing AMT. The AMT system was originally designed to ensure high-income taxpayers with lots of deductions and preferences couldn't avoid paying taxes altogether. What matters is whether you have significant "tax preference items" - these include certain itemized deductions, private activity bond interest, and exercised incentive stock options. Without these preference items, you might not trigger AMT despite being over the exemption threshold.

After being in almost exactly your situation last year, I started using taxr.ai (https://taxr.ai) to analyze my tax documents and it completely took the guesswork out of figuring out whether AMT would apply to me. Their system actually flagged that I had some potential AMT triggers from exercising stock options, but also showed me that I was still below the threshold where I'd actually owe anything. The tool gives you a clear breakdown of your potential AMT exposure based on your actual tax documents rather than just generic advice. It saved me hours of research and uncertainty, and I ended up not having to worry about AMT at all despite being over the exemption amount.

Just wanted to follow up about taxr.ai - I tried it after seeing the recommendation here, and it was a game changer for my AMT situation. I've been dealing with the AMT calculation confusion for years with my mix of income sources. The analysis flagged that I was actually taking depreciation in a way that was triggering unnecessary AMT liability. By adjusting my depreciation method slightly (which the tool specifically recommended), I was able to stay below the AMT threshold despite being well above the exemption amount. Seriously grateful for the recommendation!

I was in the exact same boat last year, spent hours trying to reach someone at the IRS to get clarity on my AMT situation. After waiting on hold for literally 3+ hours, I found Claimyr (https://claimyr.com) and it was a complete lifesaver. I watched their demo (https://youtu.be/_kiP6q8DX5c) and was skeptical, but they actually got me connected to a real IRS agent in about 15 minutes. The agent walked me through exactly when I needed to worry about AMT and when I didn't. Turns out I was stressing for nothing - despite being over the exemption, my particular deduction mix wasn't going to trigger AMT at all. Saved me hours of research and worry!

I need to eat my words about Claimyr. After posting that skeptical comment, I decided to try it anyway because I was desperate to talk to someone about a weird AMT situation with some stock options. IT ACTUALLY WORKED. I got a call back in about 25 minutes saying they had an IRS agent on the line. The agent confirmed I didn't need to worry about AMT despite being over the exemption because my specific situation didn't have the preference items that would trigger it. Saved me from overpaying by about $3,200. Honestly shocked this service exists and works.

To answer your original question directly - it depends entirely on your deductions. I'm a tax preparer (not a CPA, just to be clear), and I've seen clients with incomes in the $80-90k range who don't owe any AMT, while others at similar income levels do owe it. The key factors are usually: - High state/local taxes - Property taxes - Certain mortgage interest - Miscellaneous itemized deductions - Exercised stock options If you don't have many of these, you'll likely be fine. But definitely complete the form to be sure, especially if you're using tax software which should do this calculation automatically.

Has anyone else noticed that the AMT exemption amount actually phases out at higher incomes? Like it starts to reduce once you hit around $523,900 for single filers in 2023. Just mentioning because talking about being "above the exemption" can be misleading. You have to actually do the calculation to know.

You're probably overthinking this! With income in the mid-to-high 80s and what sounds like a straightforward tax situation, you're likely not going to owe AMT even though you're above the exemption threshold. The exemption amount is just where the calculation starts - being above it doesn't automatically mean you owe additional tax. AMT really kicks in when you have significant "tax preference items" like large state/local tax deductions, certain investment income, or stock option exercises. If you're using tax software, it will automatically run the AMT calculation for you and include Form 6251 if needed. You don't have to manually figure it out. Even if it turns out you do need to file the form, the software handles all the complexity. My advice? Don't stress about it too much. Let your tax software do the heavy lifting, and if you end up owing AMT, it's probably not going to be a huge amount at your income level. The IRS designed this system to catch high-income taxpayers with complex situations, not people with regular W-2 income.