Question

AMT tax credit - I paid AMT tax in 2016 and 2017 for exercising stock options. Can I claim the credit in 2020 tax return?

Forum|Forum|5 years ago
January 26, 2021
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I have a question about the tax credit of AMT for 2020 tax return. As you know, I paid AMT tax in tax years of 2016 ($39,673), and 2017 ($15,285). In tax years of 2018 and 2019, there were no AMT tax. This year of 2020 tax return, I also don't have AMT tax. I want to know whether I could claim the AMT tax credit from previous years of 2016 and 2017.

The AMT taxes of 2016 and 2017 were caused by my exercised ISO employee stock options. I still hold the stock options, but the FMV (fair market value) has dropped significantly from last year (2020) after I left the company.

ReneeM7122

Yes, you can take an AMT credit for the ISOs of prior years where the FMV has decreased significantly. Unfortunately, though, this credit is no longer a refundable credit as of 2012, so the benefit may be limited. TurboTax will creating a reversing entry on Form 6251, lowering your AMT taxable income.

Under Federal Taxes > Deductions and Credits, scroll down to Estimates and Other Taxes Paid, and then down to Credit for AMT paid in Prior Year.