Why do I have an AMT credit on my 2021 tax return?

If you're getting an Alternative Minimum Tax (AMT) credit, Form 8801 Credit for Prior Year Minimum Tax— Individuals, Estates, and Trusts should be completed if:

• An AMT liability and adjustments or preferences other than exclusion items,
• A credit carryforward to 2021 (on 2020 Form 8801, line 26), or
• An unallowed qualified electric vehicle credit.

If  you're getting hit with the Alternative Minimum Tax (AMT), common reasons include:

• Exercising or selling ISOs (incentive stock options)
• Deducting interest from a large second mortgage for a house boat or recreational vehicle
• Realizing a large capital gain (for example, when you sell a home or other investments for a profit)
• Having a household income greater than the phase-out thresholds while also having a significant amount of itemized deductions.

Review your TurboTax entries to make sure you didn't answer yes to any of the AMT questions. 

Related information: 

• What is the Alternative Minimum Tax (AMT) in 2021?:
• How much is the AMT exemption?