There is a limitation on the Line 29 calculation of Form 6251 Alternative Minimum Tax - Individuals. This limitation is based on the age of the taxpayer. If a taxpayer is under age 24, the allowable amount of the exemption is limited to earned income plus $7,600 if any of the 3 conditions listed in the instructions for the form apply to them.  In the TaxAct program, when going through the Q&A interview, on the screen Alternative Minimum Tax the amount of AMT calculated for the return is shown.  Reviewing this section of the Q&A interview may allow this limitation to be removed from the return.  See the steps below to directly access the screen to review.

Per the Instructions for Form 6251 Alternative Minimum Tax – Individuals, page 9:

Part II—Alternative Minimum Tax

Line 5—Exemption Amount

If line 4 is more than the amount shown for your filing status in the middle column of the chart on line 5, see the Exemption Worksheet to figure the amount to enter on line 5.

Form 1040NR. If you are filing Form 1040NR, use the following chart to figure the amount to enter on line 5. However, if line 4 is more than the amount shown for your filing status in the middle column of the chart, use the exemption Worksheet to figure the amount to enter on line 5.

Certain Children Under Age 24

Your exemption amount is limited to the amount of your earned income plus $7,600 if condition 1, 2, or 3 below applies to you.

1. You were under age 18 at the end of 2018.
2. You were age 18 at the end of 2018 and did not have earned income that was more than half of your support.
3. You were a full-time student overage 18 and under age 24 at the end of2018 and did not have earned income that was more than half of your support.

If condition 1, 2, or 3 applies to you, complete the Exemption Worksheet, including lines 7 through 10, to figure the amount to enter on Form 6251, line 5.

Exception. If you filed a joint return for 2018 or neither of your parents was alive at the end of 2018, don’t complete lines 7 through 10 of the Exemption Worksheet. However, you still must complete lines 1 through 6 of the worksheet if Form 6251, line 4, is more than the amount shown for your filing status in the middle column of the chart on line 5 (or the chart earlier in the line 5 instructions if you file Form 1040NR).

Certain January 1 birthdays. If you were born on January 1, 2001, you are considered to be 18 at the end of 2018. Your exemption amount is limited only if you didn’t have earned income that was more than half of your support.

If you were born on January 1, 2000, you are considered to be 19 at the end of 2018. Your exemption amount is limited only if you were a full-time student who didn’t have earned income that was more than half of your support.

If you were born on January 1, 1995, you are considered to be 24 at the end of 2018. Your exemption amount is not limited.

Line 8 of the worksheet. Earned income includes wages, tips, and other amounts received for personal services performed. If you are a sole proprietor or a partner in a trade or business in which both personal services and capital are material income-producing factors, earned income also includes a reasonable allowance for compensation for personal services, but not more than 30% of your share of the net profits from that trade or business (after subtracting the deduction for part of your self-employment tax). However, the 30% limit doesn’t apply if there are no net profits from the trade or business. If capital isn’t an income-producing factor and your personal services produced the business income, all of your gross income from the trade or business is considered earned income.

If these conditions do not apply it is possible to remove the limitation being applied on the return by reviewing the AMT section of the Q&A interview:

1. From within your TaxAct® return (Online or Desktop), click Federal. On smaller devices, click the menu icon in the upper left-hand corner, then select Federal
2. Click Taxes in the Federal Quick Q&A Topics menu to expand the category and then click Alternative minimum tax
3. Click Continue to the screen AMT - Under Age 24 Status for Exemption where you can check the box if applicable

Note. If the individual is OVER age 18 at the end of 2018 and NOT a full-time student and their earned income IS over half of their support, then they would appropriately check this box.