topic If I pay 33,000$ in AMT taxes in one year (33,000 more than I would have without AMT being applied), does the entirety of the 33,000$ carry as credit to following years? in Get your taxes done using TurboTax

If I pay 33,000$ in AMT taxes in one year (33,000 more than I would have without AMT being applied), does the entirety of the 33,000$ carry as credit to following years?

nopersonalinfogo — Sun, 30 Aug 2020 20:40:01 GMT

Trying to figure out if some percentage of the carry forward is lost or not.

Re: If I pay 33,000$ in AMT taxes in one year (33,000 more than I would have without AMT being applied), does the entirety of the 33,000$ carry as credit to following years?

Critter-3 — Sun, 30 Aug 2020 21:13:06 GMT

The AMT gets carried forward and is recaptured on the form 8801 ... https://www.irs.gov/forms-pubs/about-form-8801

Re: If I pay 33,000$ in AMT taxes in one year (33,000 more than I would have without AMT being applied), does the entirety of the 33,000$ carry as credit to following years?

nopersonalinfogo — Sun, 30 Aug 2020 21:16:07 GMT

Does all of the 33,000$ carry forward? Wondering if anyone of it becomes "lost"

Re: If I pay 33,000$ in AMT taxes in one year (33,000 more than I would have without AMT being applied), does the entirety of the 33,000$ carry as credit to following years?

Critter-3 — Sun, 30 Aug 2020 21:22:46 GMT

Well here is the bottom line ... the AMT credit can only be used against future AMT tax ... so if you never get hit with AMT taxes again there will be nothing for the credit to work against ... hence it gets "lost".

Re: If I pay 33,000$ in AMT taxes in one year (33,000 more than I would have without AMT being applied), does the entirety of the 33,000$ carry as credit to following years?

nopersonalinfogo — Sun, 30 Aug 2020 21:42:07 GMT

Are you sure that's correct? If I understand what you're saying, the AMT credit is lost if I never pay AMT tax again, but my understanding of the AMT credit is that, for example, if I paid AMT tax in 2018, and didn't have to pay any AMT tax in 2019, I would be credited back the difference of the AMT tax bracket and the regular federal tax brackets.

Re: If I pay 33,000$ in AMT taxes in one year (33,000 more than I would have without AMT being applied), does the entirety of the 33,000$ carry as credit to following years?

nopersonalinfogo — Sun, 30 Aug 2020 21:44:37 GMT

Forgot to mention, the AMT tax paid is triggered from exercising and holding ISO options

Re: If I pay 33,000$ in AMT taxes in one year (33,000 more than I would have without AMT being applied), does the entirety of the 33,000$ carry as credit to following years?

Critter-3 — Sun, 30 Aug 2020 21:57:02 GMT

Read the form and the instructions ... but I have been in the business almost 30 years now and I have almost never seen anyone use up the carryover credit.