Alternative Minimum Tax
Alternative Minimum Tax (AMT) is meant to ensure that anyone who benefits from certain tax advantages pays a minimum amount of tax. You may need to file and pay Minnesota AMT at a rate of 6.75% even if you did not have to pay federal alternative minimum tax.
Common reasons to file and pay AMT include claiming large amounts of any of these:
- Gambling losses as deductions on Schedule M1SA
- Home mortgage interest deductions on Schedule M1SA
- State or local taxes (such as income, sales, or property) on Schedule M1SA
- Employee business expenses on Schedule M1SA
- Exemptions or income subtractions not allowed on your state return (if claiming the standard deduction)
Complete Schedule M1MT to determine if you must file and pay Minnesota AMT.