This credit is a nonrefundable credit if you paid the Alternative Minimum Tax (AMT) in a previous tax year. The Alternative Minimum Tax credit is used to recover excess tax paid due to the AMT in prior years, but it can only be applied to reduce your regular income tax liability in subsequent years when you are not subject to the AMT.
In other words, you can only claim the AMT credit in tax years when you are not subject to the Alternative Minimum Tax. If you have an AMT credit in a given year, you can carry it forward to future tax years to offset your regular income tax liability. However, the AMT credit cannot be used to directly reduce your future AMT liability.
Even if the taxpayer cannot claim the credit, filing Form 8801 allows them to carry the credit forward.
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