Tax News

CCH (cch.taxgroup.com) reports:

Married taxpayers were required to include qualified dividends in the calculation of their alternative minimum tax (AMT). The taxpayers reported their qualified dividends but computed the tax on them separately and did not include them in their taxable income; thereby excluding them for purposes of the AMT. However, although qualified dividends receive special treatment under which the amount of AMT is capped by reference to the capital gains rates in the regular tax regime, they may not be disregarded in the calculation of AMT. Moreover, even if Form 1040 is ambiguous with respect to qualified dividends, the form is not an authoritative source of law and does not affect the taxpayers' obligations under the IRC.
T. Weiss, 129 TC No. 18, Dec. 57,206
Other References:
Code Sec. 55
CCH Reference - 2008FED ¶5101.14
Tax Research Consultant
CCH Reference - TRC FILEIND: 30,400