Reply To: Form 6251, 8801 & AMT Tax Credit for Exercised ISOs

Home Fairmark Forum Equity Compensation Form 6251, 8801 & AMT Tax Credit for Exercised ISOs Reply To: Form 6251, 8801 & AMT Tax Credit for Exercised ISOs

#5451
gighi
Participant

I am by no means an expert, but I can confirm that AMT credit is completely different from the adjusted cost basis: you adjust the cost basis for AMT purposes when you sell your shares, but the AMT credit can be recouped earlier/later, purely on the spread between regular tax and AMT tax in any given year.

I have always used TurboTax and it correctly calculates my credit and carries it forward. I have credits that I am carrying forward from 2015 because I haven’t used them all.

The fact that TurboTax doesn’t generate an 8801 for your 2019 return is definitely weird, if the $2,500 you paid was indeed caused by ISO exercise.

What happens if you go through the interview in TurboTax in the proper section? I use TurboTax desktop and you can force going through it, it will ask to plug in some numbers from your 2018 form 6251.

Another thing you can do is to try to manually fill form 8801 based on the irs instructions: it’s not too difficult and at least you’ll figure out if it’s a problem in TurboTax or if the carryforward from 2018 is legitimately disappearing in 2019 due to some other math.

I would love for you to post your results, I’m always interested in people dealing with AMT credits!