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klumpyan
Returning Member

Alernative Minimum Tax Credit

I paid Alternative minimum tax in 2015 of 9,395; 2016 of 8,367 and 2017 of 10,800.  The 2018 return used the 10,800 prior year AMT as a credit for 2018 regular tax.  Do I have available the 2015 and 2016 AMT tax as a credit carryforward to 2019 regular tax?'

Most all the AMT tax is result of disallowance of itemized deductions available for regular tax computations ( taxes from Schedule A)

Although used up the 2017 carryforward to 2018, this only represents the 2017 AMT tax, not previous years 2015-2016??

1 Reply
KarenJ2
Expert Alumni

Alernative Minimum Tax Credit

You cannot receive AMT credit for Itemized deductions that were disallowed.    Please see more information below and TurboTax FAQ on AMT and the AMT credit.

 

Credit for Prior Year Minimum Tax calculates how much of the AMT was related to deferral items, which generate credit for future years, as opposed to exclusion items which are not deductible for AMT, and consequently are lost.

 

Certain items in Line 2 of the Form 6251 are simply not deductible for AMT purposes, such as taxes, home equity mortgage interest and miscellaneous deductions. Those that are considered exclusion items. will not provide a tax credit for AMT.

 

Other items create timing differences, such as depreciation differences between the two tax systems, and the phantom income from exercising incentive stock options. These items can generate a credit on Form 8801 and reduce your taxes in future years.

 

Other portions of Line 2 are deferral items. An AMT credit may be generated based on the reversal of the timing difference of these items. For example, AMT depreciation methods may be slower than those for the regular tax, but you will eventually receive the same deduction. To calculate and report your AMT credit you need to fill out Form 8801: Credit for Prior Year Minimum Tax.

 

Alternative Minimum Tax: Common Questions

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