Howdy, all.

I was just running my taxes through H&R Block when my eyes fell upon the above credit (in a long list of unclaimable credits I usually scan in a hurry). It occured to me that years ago I paid a very big tax bill because of an unusually good year in the stock market (for me).

But while the H&R software suggests this credit can only be handled if I paid an AMT last year, the IRS site says something more like "previous years."

Any advice on how I might approach this would be most appreciated.

Thanks,

Jim

I guess it mean that The AMT credit available to you this year will depend on the AMT you paid in prior years and the AMT you calculate for this year. To be eligible for an AMT credit, you must pay the AMT in at least one tax year. the AMT may apply to even middle income individuals. It is a formula to determine the "minimum" you will have to pay given the income your receive in a given year. If your taxable regular income is lower than the income calculated for your AMT, you will have to pay the AMT amount. However, by paying the AMT, you receive a credit for future use. The regular rule allows you to claim AMT credit in the year following the year you paid the AMT. However, there may be some exceptions. If you are not permitted to claim the credit this year, you will likely have been alerted to the reason and know you must wait. You will claim the credit on Line 54 of IRS Form 1040. You must also check a box showing you have filled out and filed Form 8801. This will reduce the tax you owe in the current year, and you can pay accordingly. In addition, you should be aware of any credit you have remaining according to Form 8801. Continue to calculate your AMT every year to see if you can claim that credit again in the future

Thanks for the detailed response!

Upon doing more reading around, it seems that the conditions under which one can claim a credit from past AMT payments are quite narrowly set.

The closest I seem to come is the situation in which stock options are exercised and the underlying stock is purchased and held. But this isn't anything I did.

-Jim