AMT and Equity Compensation
Alternative minimum tax, nonqualified stock options, incentive stock options and other forms of equity compensation.
AMT Credit and a change in tax filing status
Posted by: mjab, April 8, 2016 07:40PM
Last year my wife and I filed separate returns and we both filed forms 6251 (AMT Tax) and 8801 (Credit for prior year AMT). This year we are filing jointly and I am stuck on how to complete form 8801. 8801 wants info from last years 6251. Do I simple add the values from our two 6251s for this form?

Also there are various calculations on the 8801 that are based upon last years filing status. If I add the two 6251s, do I then proceed as if the filing status for the last years 6251 was joint? If I don't do this then we lose our carry over credit.

Thanks

Re: AMT Credit and a change in tax filing status
Posted by: Kaye Thomas, April 10, 2016 12:25PM
More than once I've begged the IRS to address this problem and they've refused. You can't achieve a reasonable result by following the instructions for this form, because lines 1 through 21 of Form 8801 make no sense when prepared using joint numbers. I expect you'll have to file a paper return, as tax return software isn't set up to handle this problem. Here's what I would do.

Lines 1 through 20 of Form 8801 are left blank except for the notation "SEE STATEMENT" on line 1. Your attached statement will say something like this:

"Taxpayers filed separately in 2014, requiring separate calculations to determine the proper combined amount to show on line 21 of Form 8801, as shown in the attached forms."

For each spouse, create a separate Form 8801, labeled "AVAILABLE AMT CREDIT CALCULATION FOR [NAME]". Fill in lines 1 through 21 (plus Part III of the form, if applicable). Then add the two line 21 amounts together (if one is negative, treat it as zero) and put the sum on line 21 of the actual Form 8801 and continue from there.

Kaye Thomas
Fairmark.com

Re: AMT Credit and a change in tax filing status
Posted by: mjab, April 12, 2016 03:51PM
Thank you for reply. It seems so straight forward now.



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