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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