| The AMT adjustment for State Income Tax Refunds, | | | | you include an amount from Form 1040, line 21, you |
| line 8 on Form 6251, is a reduction to your Alternative | | | | must enter a description and the amount next to the |
| Minimum Taxable income. There isn't much a taxpayer | | | | entry space for line 8. For example, if you include a |
| can do about this other than to understand just a little | | | | refund of real property taxes, enter "real property" and |
| bit of what is going on. | | | | the amount next to the entry space." |
| Just for fun, let's start with the IRS' explanation for this | | | | What does this mean in "plain English?" The answer is |
| in the instructions to Form 6251: | | | | best done with an example: |
| "Include any refund from Form 1040 line 10, that is | | | | Assume a couple paid $5,000 in state income taxes in |
| attributable to state or local income taxes. Also include | | | | 2008 and itemized this deduction (Schedule A), which |
| any refunds received in 2009 and included in income | | | | they were allowed to do. But the state income tax |
| on Form 1040, line 21, that are attributable to state or | | | | return filed showed they had overpaid by $500. This |
| local personal property taxes or general sales taxes, | | | | $500 refund was received from the state in April, |
| foreign income taxes, or state, local, or foreign real | | | | 2009. |
| property taxes. Enter the total as a negative amount. If | | | | |