Can I use my AMT credit when I don’t have to pay AMT?
September 18, 2006
Subject: Can I claim an AMT credit?
Date: Mon, 03 Apr 2006
I exercised ISOs and held the stock during 2004, resulting in an AMT. I still haven’t sold the stock.
According to my 2005 tax calculations, I don’t have an AMT for 2005. Can I claim a refund for AMT credit from 2004?
On Turbo Tax, line 2 (exclusion items) of Form 8801 includes the amount from exercise of an ISO. Based on the instructions, I’m not sure that’s right.
Regardless of the refund, do I have to file Forms 6251 and 8801 for 2005?
Date: Wed, 14 Jun 2006
The amount from exercise of an ISO should not be included on Form 8801, line 2.
I recommend that you include Forms 6251 and 8801 to correctly compute your AMT credit carryover to 2006. Since you don’t have an AMT for 2005, you might get a little AMT credit on your 2005 income tax return.
Why do employees who exercise and sell ISO stock continue to use Turbo Tax? How complex does a tax return have to be before you decide it’s time to get professional help?