Credit for Prior-Year Minimum Tax – Form 8801

Editor’s Note: Alternative Minimum Tax (AMT) is a separate tax. AMT is imposed in addition to your regular tax. AMT is triggered by two types of adjustments—deferral and exclusion items. Deferral items can create a minimum tax credit (also called the AMT credit). Read on to find out more information about how you can apply the credit for prior-year minimum tax with Form 8801.

Credit for Prior-Year Minimum Tax? More Info On AMT Credit Carryforward Option

The Prior-Year Minimum Tax Credit lets you get back money you paid as an AMT in a prior year. You can only claim this credit in a year when you don’t have to pay AMT. You can’t use the credit to reduce your AMT liability in the future. However, AMT credit carryforward is granted for unused portion of the credit to future years.

When to Use IRS Form 8801

Use IRS Form 8801 for these purposes:

• If you had an AMT liability for something other than an exclusionary item (such as a deferral item)
• To calculate the minimum tax credit
• To calculate the amount you can carry over to future years

Deferral items include:

• Depreciation
• Incentive stock options exercised and not sold

Form 8801 Instructions

Refer to the instructions for completing Form 8801 from the IRS.

Where to Go to Get Help With The AMT Credit

Whether you make an appointment with one of our knowledgeable tax pros or choose one of our online tax filing products, you can count on H&R Block to help you get back the most money possible.