T691: Alternative Minimum Tax
The Alternative minimum tax (AMT) was designed to prevent wealthy Canadians from paying little or no income tax through the use of certain preferential tax treatments (like those listed below). A special tax rate is applied to your income if you reported or claimed certain amounts (such as a taxable capital gain or loss). If this tax amount is more than the federal tax calculated in the usual way, then you would need to pay minimum tax.
Tax Tip: If you paid minimum tax in any of the previous 7 years and you aren’t subject to AMT in 2024, you might be able to claim credits against your income tax payable for all or part of the minimum tax you paid previously. This is known as minimum tax carryover. To claim your minimum tax carryover, complete the applicable sections of the T691 page in H&R Block’s tax software.
Note: If you’re a resident of Québec, complete form TP-776.42-V: Alternative minimum tax to calculate your minimum tax payable or if you want to claim a deduction for AMT paid in the previous 7 years.
How do I know if I need to complete form T691?
If you reported or claimed any of the following on your return, you’ll need to complete form T691 to determine whether you’ll need to pay minimum tax:
- Taxable capital gain
- Loss from claiming capital cost allowance on rental properties
- Loss from a limited partnership
- Certain carrying charges on investments
- Loss from resource properties resulting from, or increased by
- Claiming a depletion allowance
- Exploration and development expenses and
- Canadian oil and gas expenses
- An employee home relocation loan reduction
- Security options deduction
- Federal political contribution tax credit
- Investment tax credit
- Labour-sponsored funds tax credit
- Federal dividend tax credit or
- Overseas employment tax credit
What is a preferential tax rate?
Preferential tax means that the applied tax rate is better than it would be on a normal salary or interest income.
Where can I find the inclusion rate?
Refer to the Canada Revenue Agency (CRA) website for inclusion rates for previous years. For 2000, you can find the inclusion rate on your notice of assessment or reassessment for the year or by contacting the CRA at 1 (800) 959-8281.
Where do I claim this?
Follow these steps in H&R Block’s 2024 tax software:
- On the left navigation menu, under the Credits & deductions tab, click Other.
- Under the MISCELLANEOUS heading, select the checkbox labelled Alternative minimum tax (T691), then click Continue.
- When you arrive at the Alternative minimum tax page, enter your information into the tax software.
