Form 8801 is used to calculate the minimum tax credit, if any, for alternative minimum tax (AMT) incurred in prior tax years and to calculate any credit carryforward.
If the taxpayer had an AMT liability in the prior year due to:
- adjustments or other preferences (but not due to exclusions),
- an AMT credit carryforward from the prior year, or
- an unallowed qualified electric vehicle credit,
then Form 8801 should be completed, and it should be filed if Form 8801 line 21 is greater than zero.
See here for more information about AMT.
For a given tax year, if a taxpayer is not required to pay AMT but did pay AMT in a previous year, they may be able to claim a minimum tax credit against their current year taxes. This credit may be both refundable and nonrefundable, that is, if the taxpayer qualifies, the credit can not only reduce their tax liability but also increase their refund. A taxpayer cannot claim this credit if they are required to pay AMT in the same year. However, completing Form 8801 will also calculate the amount of minimum tax that may be carryforward to future tax years.
The credit is figured on Form 8801. Even if the taxpayer cannot claim the credit, filing Form 8801 allows them to carry the credit forward. Completing this form will also entail completing one or more worksheets available in the instructions.
To access the Form 8801 in TaxSlayer Pro from the Main Menu of the tax return (Form 1040) select:
- Credits
- Prior Year Minimum Tax Credit (8801)
Note: This is a brief guide to the credit for prior year minimum tax in the TaxSlayer Pro program. This is not intended as tax advice.
Additional Information:
IRS: Instructions for Form 8801, Credit for Prior Year Minimum Tax