COMPUTATION OF 2011 ALTERNATIVE MINIMUM TAX TO DETERMINE
NEBRASKA MINIMUM TAX FOR THE 2011 NEBRASKA RETURN
In this revised ruling, the Federal Form 6251, line 3 instruction is rewritten to read as follows:
Enter the Federal Form 6251, line 3 amount, less the amount from line 8, Form 1040N.
How should the alternative minimum (AMT) tax computed for a taxpayer’s 2011 U.S. Individual Income Tax Return, Federal Form 1040 or 1040A, be recalculated to compute the Nebraska AMT?
The federal AMT must be recomputed using the adjustments required by Neb. Rev. Stat. § 77-2715. This will facilitate the computation for items which are reflected differently in the determination of federal taxable income for Nebraska purposes. This applies to any federal schedules or other forms, the results of which are used in calculating the federal AMT.
Among the adjustments provided by Neb. Rev. Stat. § 77-2716 are the exclusion from federal adjusted gross income of interest or dividends from U.S. obligations as set forth in Individual Income Tax Reg-22-002.05A and the inclusion of interest or dividends from non-Nebraska source state or local obligations. Neb. Rev. Stat. § 77-2716 also provides for the exclusion from Nebraska taxable income of any non-Nebraska income from an S corporation or limited liability company (LLC). Therefore, any associated preference item derived from the S corporation or LLC included in the AMT calculations should be excluded to the same extent in the Nebraska computation.
The specific line entries and the required adjustments in recalculating the minimum tax for the 2011 Nebraska Individual Income Tax Return, Form 1040N, are provided below. Recalculate all total or computational lines to reflect adjustments made pursuant to this ruling. All other entries must be the same as for the federal minimum tax computation.
2011 Federal Form 6251 (Alternative Minimum Tax - Individuals):
2011 Federal Form 1040A, Alternative Minimum Tax Worksheet:
A copy of the recomputed Federal Form 6251, or Federal Form 1040A, Alternative Minimum Tax Worksheet, must be attached to the Nebraska Individual Income Tax Return, Form 1040N, when filed.
The AMT is to be recomputed for all taxable years beginning after December 31, 1978. Other revenue rulings involving recomputation of Federal Form 6251, or the Federal Form 1040A, Alternative Minimum Tax Worksheet, are shown below for the preceding three years:
Douglas A. Ewald
January 17, 2012