Credit for Prior Year AMT (Form 8801)

[ETax847]

New client had AMT of $50k in 2021 due to exercising his ISO's.  In 2021 he has not exercised any Incentive Stock Options and will not have any AMT.  Is he eligible for the Credit for Prior Year Minimum Tax on his 2022 taxes?  Where is the unused AMT credit and carryforward captured in ATX?

[jasdlm]

I have done this (Credit) once in my life.  If no one here is more familiar, I'll try to dig back and see if I can figure out exactly what I did.  I remember the client, but I don't remember what year it is.  Replying to bump this up.

[jklcpa]

On 12/5/2022 at 6:39 PM, ETax847 said:

Is he eligible for the Credit for Prior Year Minimum Tax on his 2022 taxes?

The credit may potentially only be claimed in a year when the taxpayer does not pay AMT itself.  The credit is available as carryforward if the taxpayer paid AMT in prior years, but not all of the AMT will factor into the credit.  Only the portion of AMT that relates to depreciation and ISOs will ultimately be used as part of the credit calculation.  Deductions that may have triggered AMT in the first place, such as state income and property taxes, home equity mtg interest, and miscellaneous deductions, are excluded.

I can't answer specifically where this is in ATX other than to say that it should be with the input for form 8801, and it may be that many of the figures may be prefilled from prior years' forms 6251 and 8801 if the prior return was prepared in ATX.