TurboTax not generating Form 6251 2i information from Form 3921 correctly

[ahu]

According to the IRS, Instructions for Form 6251 (2021) | Internal Revenue Service (irs.gov) says the amount on Form 6251 2-I should be the DIFFERENCE between the [total fair market value of all the shares] and the [total amount paid for the shares], but TurboTax filled in the SUM of those two values instead. What's going on here?

I filled in the information in TurboTax correctly, the section ISO Exercise and Hold which is under section Investment Income under section Personal Income asked for Date Option Granted (Box 1), Date Option Exercised (Box 2), Price Per Share (Box 3), Fair Market Value (Box 4), Number of Shares Transferred (Box 5), and I filled in word for word what was on my Form 3921. The IRS states Form 6251 2-I should be (Box 4 * Box 5) - (Box 3 * Box 5). TurboTax instead filled it out with (Box 4 * Box 5) + (Box 3 * Box 5).

[Anonymous_]

I will page @Rick19744 

[Rick19744 · Accepted solution]

I agree with your analysis, but since we can't see your input it is hard to diagnose.

This also agrees with the following from TT:

https://turbotax.intuit.com/tax-tips/investments-and-taxes/incentive-stock-options/L4azWgfwy

You may have to call TT and have them determine if you missed some box to check, etc.  While this is not a new adjustment, just make sure your TT software is up to date as that will most likely be the first thing the TT representative will ask.

Essentially the AMT adjustment is the bargain element in the year exercised.

[ahu]

Thanks Rick, I'll try calling TT and update the thread. I apply all the updates on the TT software found on startup, and I doubt that I missed some box to check - I can't imagine it would ever make sense to add the two amounts 😁