In 2018 I'm taking a $7,500 credit on form 8936. This transferred to line 54(c) on schedule 3. Turbo Tax did not reduce line 22 on form 8801 for this credit amount and as a consequence calculated an AMT credit carryover utilization in 2018. This appears contrary to the IRS instructions. Who is right?
Hey, you're right! Thanks for bringing this to our attention! I'll try to reply back when we learn when the fix will be released.
I don't think you'll be able to e-file if you override the 8801 line 22 to input the correct value.
This seems to be a problem again in Turbo Tax 2019. Do you know if/when it will be fixed?
I seem to be having a problem others had with Turbo Tax last year. I expected to receive a $3750 tax credit for an electric vehicle purchase, but my total tax liability decreased by substantially less. When I remove the electric vehicle form from TurboTax, the credit for prior year AMT reappears.
Based on the original question from the thread I am replying to, it looks like the current version of Turbo Tax will only allow one to claim one of these credits. Is this correct? I would like to be able to claim both for tax year 2019. Will this be corrected in a software update? Otherwise it looks like I would have to apply the credit for prior-year AMT in next year's return, no?
The AMT credit would only apply if you didn't have AMT tax for the current year. It is possible that when you apply the vehicle credit that you then end up with an AMT tax. Do you have an AMT tax on your return when you are getting the vehicle credit? (Schedule 2, line 1)
Working through the involved forms backwards, Turbo Tax 2019 seems to be following 2019 IRS instructions.
I seem to be in a strange situation where I have no AMT this year but a "tentative minimum tax" that on form 8801 forces me to take a "credit carry forward to 2020". I had never heard of such a thing since I have the tax liability for the full electric vehicle tax credit.
Since the electric vehicle tax credit must be used the tax year the vehicle was purchased (2019) or it is lost, I will have to use it this year. Hopefully, next year I do not have AMT and can carry forward my old AMT tax credit for use then.
This is a known issue through Turbo Tax and they are actively trying to resolve the issue. Once this is resolved we will notify you. Here is a signup link to receive notification that the situation has been resolved.