Guide to Alternative Minimum Tax (AMT)
By Kaye A. Thomas
Updated January 28, 2008
Welcome to our free online guide to the alternative minimum tax, or AMT.
Current feature
AMT Credit Technical Correction
Beginning in 2007 many people with long-term unused minimum tax credit are allowed to claim more minimum tax credit than under the regular rule. The original version of this law had a problem that prevented people from recovering these older credits over a period of five years, as intended. A subsequent technical correction fixes the problem for most people, but not for everyone. Note that in addition to this article we have detailed guidance on this credit in the pages listed below.
details: AMT Credit Technical Correction
Here's a list of pages available in this guide.
AMT in general
- Alternative Minimum Tax 101
Read this page to get the big picture. - Top 10 Things that Cause AMT
Liability
Or maybe 11. - AMT and Long-Term Capital Gain
Explains why you may run into alternative minimum tax liability when you have a large long-term capital gain — and what you can do about it. - AMT Capital Loss Trap
Some people inadvertently pay AMT they don't owe when they fail to realize a regular tax capital loss carryover can be used in the AMT calculation. - Dual Basis Assets
It's important to realize that you can end up owning assets that have an AMT basis that's different from the basis you use for regular tax purposes. If you miss this detail you may end up throwing tax dollars away. - Claiming AMT Credit
You may be able to claim AMT credit from exercising an incentive stock option even if you haven't sold the shares. If you failed to do so, you have a limited amount of time to correct the mistake.
Long-term unused AMT credit
These pages provide detailed guidance on the refundable credit for long-term unused minimum tax credit, which became available in 2007.
- Refundable AMT Credit
Overview of the refundable credit. - Refundable AMT
Credit Calculation
A description of the steps in calculating the refundable AMT credit. - Long-Term
Unused Credit
Rules for determining how much of your unused credit is long-term. -
Refundable Credit Base Amount
This is the amount you can claim if your income is below the level where the refundable credit begins to be phased out. -
Tentative Refundable Credit
This is the amount determined after application of the phase-out rules. - Coordination with Regular AMT Credit
The refundable credit is allowed only to the extent it exceeds the nonrefundable AMT credit.
Related
- Consider Your Options (book for people who receive options)
- Equity Compensation Strategies (book for professional advisors)
- AMT and Equity Compensation (forum for questions and comments)
- Compensation in Stock and Options (our free online guide)
- IRS Forms for Special Taxes (relevant IRS forms and publications)
