Menu

Credit for AMT Paid in Prior Year

Home Tax Reduction Credit for AMT Paid in Prior Year

  •  Jane 
    Participant
    Status: Other Professional
    Posts: 13
    Joined: 01/19/2016

    I have been doing my taxes in TurboTax for many years. Starting in 2009, it created form 8801 and started carrying over a large prior year balance (row 19), which is supposed to be a carryover amount from the prior year’s form 8801 line 31. If I open my 2008 taxes (pdf as the program will not run), there is no form 8801. The amount happens to equal the balance from form 6251 row 31. The reason I paid AMT is because of exclusion items, as far as I know. I cannot think of any reason why I would have a credit carryforward. This is the first year I won’t pay AMT. As a result, TurboTax is trying to give me a large credit for AMT paid in prior year. I think I should just zero out the credit carryforward. Thoughts? Am I missing something?

    #189807 Reply
     Larry Ragman 
    Participant
    Status: Other Professional
    Posts: 354
    Joined: 08/30/2018

    Don’t zero it! This is legit, or at least it makes sense. The credit exists from some item in the past. TT would not let you take it before because it can only be taken in a year you do not owe AMT. Let TT take it for you. That will clear the books.

    #189818 Reply
     Jane 
    Participant
    Status: Other Professional
    Posts: 13
    Joined: 01/19/2016

    While I’d like to take it, I did not have anything in 2008 or 2009 (or ever) that would qualify as a deferral item. I must have made a mistake when I entered something in TT. The carryover amount is huge and the credit TT is calculating this year would not even get close to clearing it.

    #190007 Reply
     Larry Ragman 
    Participant
    Status: Other Professional
    Posts: 354
    Joined: 08/30/2018

    Well, all I can say is that the AMT is wierd. I would not assume the credit was wrong. TT has been reporting it since 2009, so I don’t think the IRS is going to question it. If you are personally uncomfortable, perhaps this is the year to have aCPA review the taxes? Or, perhaps contact TT to have their help desk figure out if the credit is valid.

    #190031 Reply
     Jane 
    Participant
    Status: Other Professional
    Posts: 13
    Joined: 01/19/2016

    I reported this as a possible bug to TurboTax. TT either carried over the wrong amount in 8801 line 19 or I answered one of the TT questions wrong making it do so. Here are a couple articles I found that reference a similar issue.

    https://ttlc.intuit.com/questions/4421425-how-do-i-amend-my-2017-return-to-remove-a-form-8801-tax-credit-that-has-been-carried-over-from-previous-years-was-just-audited-by-irs-for-2016-and-need-to-adjust-2017

    https://blog.taxaudit.com/a-cautionary-tale-about-tax-scams-and-erroneous-claims-for-refund

    #190505 Reply

Reply To: Credit for AMT Paid in Prior Year

In case of a glitch or error, please save your text elsewhere, clear browser cache, close browser, open browser and refresh the page.

you're currently offline

Notifications Mark all as read  |  Clear