Form 8801 for Expats Advice On The Prior Year Minimum Tax Credit

IRS Form 8801

If you paid Alternative Minimum Tax, otherwise known as AMT, in prior years, then this article is of importance to you. You may be eligible for a tax credit for AMT paid in the prior year.

As you may know, Form 6251, Alternative Minimum Tax – Individuals, is one of two main forms used for AMT. The other being Form 8801.

Form 8801 is used to calculate your Minimum Tax Credit for AMT that you incurred in prior tax years and to figure any credit carryforward.

Credit For Paying The AMT

Two types of adjustments and preference items cause the AMT: deferral items and exclusion items.

Deferral items, such as depreciation, generally do not cause a permanent difference in taxable income over time.

However, exclusion items such as the standard deduction do cause a permanent difference.

The distinction is important as the minimum tax credit is allowed only for the AMT caused by deferral items. Only deferral items can generate credit for future years, as opposed to exclusion items, which are not deductible for AMT and as a result are lost.

To calculate and report the Prior Year Minimum Tax Credit, Form 8801, Credit for Prior Year Minimum Tax – Individuals, Estates and Trusts will need to be prepared and filed.

If you would like a quote for the preparation of your individual tax return including Form 8801, please click on the button below for a free, no-obligation Tax Preparation quote and/or free 30-minute consultation to discuss your situation further:

Tax Samaritan is a team of Enrolled Agents with over 25 years of experience focusing on US tax preparation and representation.

We maintain this tax blog where all articles are written by Enrolled Agents.

Our main objective is to educate US taxpayers on their tax responsibilities and the selection of a tax professional. Our articles are also designed to help taxpayers looking to self prepare, providing specific tips and pitfalls to avoid.

When looking for a tax professional, choose carefully. We recommend that you hire a credentialed tax professional such as Tax Samaritan that is an Enrolled Agent (America’s Tax Experts). If you are a US taxpayer overseas, we further recommend that you seek a professional who is experienced in expat tax preparation, like Tax Samaritan (most tax professionals have limited to no experience with the unique tax issues of expat taxpayers).

Randall Brody is an enrolled agent, licensed by the US Department of the Treasury to represent taxpayers before the IRS for audits, collections, and appeals. To attain the enrolled agent designation, candidates must demonstrate expertise in taxation, fulfill continuing education credits, and adhere to a stringent code of ethics.

Every effort has been taken to provide the most accurate and honest analysis of the tax information provided in this blog. Please use your discretion before making any decisions based on the information provided. This blog is not intended to be a substitute for seeking professional tax advice based on your individual needs.