What is the Alternate Tax Computation?
The Alternate Tax Computation may benefit some low-income taxpayers by reducing the amount of tax they owe. If your net income is greater than $13,500, and you are not using filing status 1 (single), you may owe less tax by using the Alternate Tax Computation. For tax years 2007 and 2008, if you or your spouse is 65 or older on December 31 of the tax year, you may benefit from the Alternate Tax Computation if your net income is greater than $24,000 and you are not using filing status 1 (single). A worksheet is available. Instructions can be found in the online Expanded Instructions, which are available on our individual income tax forms page. Complete the worksheet to determine if the Alternate Tax Computation would reduce the amount of tax you owe. If it does, use this amount on your return rather than the amount from the tax table.
The Alternate Tax Computation may benefit some low-income taxpayers by reducing the amount of tax they owe. If your net income is greater than $13,500 and you are not using filing status 1 (single), you may owe less tax by using the Alternate Tax Computation. OnLine Taxes will calculate the Alternative Tax Calculation for you if you qualify.
