I’ve been using Turbotax since 2017, This is the first year that the Alternative Minimum Tax was triggered. I owed additional tax because the AMT taxable income considered capital gains, not accounting for carryover capital losses. I had -3000 in capital gains on normal tax calculation because of very large carryover losses.
I cannot find anywhere where it states all capital loss carryover should be omitted from the AMT income calculation. Just special cases like ISO. Reading several cases online, it seems if you never had to pay AMT before, Turbotax may not have the carryover losses in that part of the program. But they can be added in either Forms or in the Online version ... the latter is described below.
Using Turbotax online, I don't have access to Forms in progress. After speaking to mulitple experts at TurboTax, one of them finally directed me to
- Alternative Minimum Tax … Click Edit
- Under "Do you have any of these uncommon situations?" check the following to get to editable dialog pages: "I need to make an AMT adjustment to my investment income or expenses", and "I reported AMT depreciation adjustments for assets I sold in 2024, and I need to allocate them as either short-term gains/losses or long-term gains/losses."
- Under "Let's adjust the capital gains and losses you had from selling assets in 2024” I added my short term and long term carryover losses as negative numbers.
- This eliminated the incorrect capital gains income and the AMT surcharge for me.
- Question: Is this appropriate?
