AnnetteB6
Expert Alumni

Get your taxes done using TurboTax

To help you understand, the Tentative Minimum Tax that often is the cause for disallowing the Form 8911 credit is the Alternative Minimum Tax (AMT) which is calculated in parallel with the 'traditional' income tax calculation.  When your return is complete, it will be determined whether you are required to be subject to AMT or not.  Even though you may not be subject to AMT, if your tentative AMT tax is greater than your net regular tax, then Form 8911 credit is disallowed.

 

Additionally, Form 8911 does not limit the total credits that you can claim.  Your income tax liability does that.  Credits are claimed in a particular order and if the credits that are picked up prior to Form 8911 credit take away all of your income tax liability, then Form 8911 credit is not claimed.

 

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