Recovering California AMT credit after moving out of state

[aochakovsky]

In 2021, I have moved out of California and I am no longer a resident.

I had a California AMT credit when I moved out.

In 2022, I was a resident of another state for 100% of the time.

Can the California AMT credit be recovered? If so, How?

My reasoning is if I file a 2022 California return, my California earnings should be 0 and all or most of my AMT credit should be refunded. Is this right and is there some other alternative?

[MonikaK1 · Accepted solution]

If you had California AMT credit to carry forward, you would need to file a California tax return and have a tax liability against which to claim the credit.

To claim the credit for prior year AMT, individuals and fiduciaries must complete form FTB 3510. Individuals and fiduciaries qualify for the credit if one of following applies:

• Had an AMT credit carryover from 2021.
• Paid AMT for 2021, and had 2021 adjustments and tax preference items other than exclusions.

See the Instructions for Form 3510 for more information.

[Exordium]

This is not an answer to the original question.  We know you have to file a tax return with tax Liability in order to use your credits, but clearly, states like California did not think about how it would give this money back to tax payers who will no longer EVER have an income in the state. (Or maybe they did this on purpose - after all California is a very punitive state) 

This amounts to theft/fraud imo.  We should be allowed to sue for our AMT credits back.

I digress though.  The unfortunate answer is it seems as though you don’t ever get those credits back.