Try to use existing AMT credit carryover from 2020: 'It turns out you don't qualify for this credit'?

[taxprep_cats]

I know I have AMT credit carryover from 2020, which is showing in my 2020 form 8801 line 26 (Credit carryforward to 2021). However,  using turbotax 2021 Home & Biz, when I go to 'Deductions&Credits' -> 'Estimates and Other Taxes Paid' -> 'Credit for AMT paid in Prior Year', I get 'It turns out you don't qualify for this credit'.

I try to go to form 8801 line 19 directly to fill out the amount, but line 19 is not fillable.

P.S. I was able to use my AMT credit last year,  when doing my tax return using Turbotax 2020 Home$Biz. I am sure that my AMT credit is not expired yet.

Very much appreciated if anyone can help me!

[MayaD]

Do you owe AMT this year?

If you do, then you are not eligible for an AMT credit in this year.

[taxprep_cats]

Hi, There

Thank you for your reply!

No, I don't owe AMT this year.

I wonder if it is because Turbotax suggests me doing standard deduction this year. Can I use AMT credit carryover if I file standard deduction?

[taxprep_cats]

By the way, after entering another 1098 that I missed yesterday,  Turbotax 2021 changed to use itemized deduction now. However, I still get the same issue that I can't use my previous year AMT credit. I wonder why? :(

[DaveF1006]

Yes, you may wish to contact live support so they can look at your screen and guide you further. If you did need not have an AMT situation this year, you should have been able to claim the credit.

@taxprep_cats

[taxprep_cats]

I found that the only workaround is importing last year's tax file when starting a new tax return. If you don't import last year's tax file which has the AMT credit carryover, you won't be able to use the AMT credit. What if people did not use turbotax last year?

[AmyC]

You can enter the prior year AMT under estimates and other taxes paid in the Deductions and Credits section.

[Cooksey]

I'm having the same problem.

We had to amend our 2020 return, so the AMT credit carryforward TurboTax imported from the last year's return is now incorrect. In 2020 we did not owe the AMT, so then it worked to use AmyC's suggestion to go into the "credit for AMT paid in a prior year", but in 2021 we do owe AMT and attempting to go into that section now just results in it saying "We checked and this credit won't affect your taxes this year. For next year, you have a $<incorrect> carryover" and does NOT let you enter the values from the prior year.

I don't understand why it doesn't just let you update the prior year Form 8801 line 26 value directly when editing Form 8801? You can edit the other fields from the prior year (6251 line 1, etc.) in that form.

[Cooksey]

Actually, I think we figured it out:

It looks like the non-editable number in the 8801 form is sourced from the "Federal Carryover Worksheet" line 21. Updating the number there changes the amount on 8801. In fact, double-clicking on the number on form 8801 line 19 takes you to that worksheet, but double-clicking on the same number in position E1 in the smart worksheet at the top of 8801 does not. This seems like a bug in Turbotax, since double-clicking on non-editable numbers usually takes you to their source location.

[smurching]

Hi! I'm having the same issue here. Unfortunately I'm using TurboTax online and so can't seem to edit my current year (2021) Form 8801 to add the 2020 AMT carryover. Is there any workaround? The only solution I can think of is to file my return and then amend it which just seems silly.

[AmyC]

The program won't let you add the AMT carryover when you are paying AMT. You will have to add the AMT carryover in a year when you are not paying AMT.

@smurching

[ebs22]

Why does TurboTax prevent me from adding the AMT carryover from last year (because of ISO exercise) while I am  paying AMT this year too (same reason, ISO exercise)? anyone can help me understand the rationale? 

Is there a deadline to claim AMT credit for a specific year? 

Thank you!

[AmyC]

AMT is created when exercised and adjusted when sold. If you only exercised this year, you do not have an adjustment to make. Here is more reading to truly explain and help you.

• Incentive Stock Options - includes various scenarios
• Re: Cannot add ISO details (intuit.com) - includes screenshots
• Missing AMT credit? - how to correct when required

@ebs22