Schedule D AMT

[hseing]

I am using 2021 TurboTax Premier which generates both Sch D regular Tax and AMT.  How come TurboTax select Sch D regular Tax for filing? Why not AMT since AMT Carryover Cap Loss is greater than the regular Tax. Thank you.

[AmyC]

The AMT was created so people could have a tax if they did not otherwise or to increase your tax liability. Your regular tax is sufficient and AMT is not taxing you more, so it is not being used. 

The AMT is different from the regular tax rate because it doesn't include the standard deduction or most itemized deductions in its calculations. Some of these itemized deductions include state and local income taxes, foreign tax credits, and employee business expenses.