Why do I have an AMT credit on my 2021 tax return?

[booshy7485]

I didn't make over $73,000 or sell stock or buy/sell a home. I dont understand why I would have a credit. How can I find out why?

[HelenC12]

If you're getting an Alternative Minimum Tax (AMT) credit, Form 8801 Credit for Prior Year Minimum Tax— Individuals, Estates, and Trusts should be completed if:

• An AMT liability and adjustments or preferences other than exclusion items,
• A credit carryforward to 2021 (on 2020 Form 8801, line 26), or
• An unallowed qualified electric vehicle credit.

If  you're getting hit with the Alternative Minimum Tax (AMT), common reasons include:

• Exercising or selling ISOs (incentive stock options)
• Deducting interest from a large second mortgage for a house boat or recreational vehicle
• Realizing a large capital gain (for example, when you sell a home or other investments for a profit)
• Having a household income greater than the phase-out thresholds while also having a significant amount of itemized deductions.

Review your TurboTax entries to make sure you didn't answer yes to any of the AMT questions. 

Related information: 

• What is the Alternative Minimum Tax (AMT) in 2021?:
• How much is the AMT exemption?

 

[TaxesAreForever]

There's a bug in the program. Go to forms and pull up the capital loss carryover worksheet and i'm pretty sure you'll see the AMT column is populated incorrectly.  If you've never paid AMT before, it should have the same capital loss carryovers in both columns. As Turbo tax figures AMT every year apparently it's keep that data and then carrying it over to the next year and the program is using that column instead of your regular capital loss carryovers. If you've never had carryovers, I guess those columns would be zero, Anyway, I would make a duplicate file just in case, then as per Turbotax support which had me do this today, delete the capital loss carryover worksheet and form 6251. Then go back to Wages and Income, Investments, carryovers and following the prompts to enter your losses and gains which will make a new capital loss carryover worksheet. Then go to the Other Section, where it has you figure AMT and run through that. Your AMT should be gone if you don't owe any.