AMT credit relief

[zetta]

According to these websites:
AMT Credit Relief
New Relief For AMT Credit Carryovers

at the end of 2006, Congress made some changes to the law that accelerates the recapture of AMT credits that are at least 4 years old.

From reading the article, I've estimated that I should get an AMT credit this year of $5,000. However, TurboTax only calculates my credit to be $2,857. It's an obscure bit of law, so it's possible the TT folks didn't account for it. I'd like to make sure that I get all the credit that is due to me!

Is anybody else able to take advantage of these changes? What worksheet or tax form did you use to calculate your credit?

[zetta]

More info available here:
Publication 553 (3/2007), Highlights of 2006 Tax Changes

Credit for Prior Year Minimum Tax





If you have any unused minimum tax credit carryforward from 2003 or earlier years, your minimum tax credit allowable for 2007 is not less than the “AMT refundable credit amount.” In addition, a portion of the credit may be refundable in 2007. That means, if the refundable part of the credit is more than your tax, you can get a refund of the difference. To figure the refundable amount of your minimum tax credit, and the AMT refundable credit amount, apply the rules that follow under Long-term unused minimum tax credit, AMT refundable credit amount, and Credit refundable.
Long-term unused minimum tax credit. To figure the refundable amount of your minimum tax credit, you must first determine whether you have any “long-term unused minimum tax credit.” Your long-term unused minimum tax credit is the amount of your minimum tax credit carryforward from 2003 (2003 Form 8801, line 26), reduced by the amount of any minimum tax credits you claimed for 2004, 2005, and 2006 (line 25 of your 2004, 2005, and 2006 Forms 8801).

AMT refundable credit amount. After you figure your long-term unused minimum tax credit, you then must figure your “AMT refundable credit amount.” IF your long-term unused
minimum tax credit is...THEN your AMT refundable
credit amount generally is...Less than $5,000 Your long-term unused minimum tax credit At least $5,000, but not more than $25,000 $5,000 More than $25,000 20% of your long-term unused minimum tax credit

The AMT refundable credit amount is reduced if your adjusted gross income (AGI) exceeds certain threshold amounts based on your filing status. The AGI threshold amounts for 2007 are in the table that follows. Your AMT refundable credit amount is reduced by 2% (.02) for every $2,500 ($1,250 if your filing status is married filing separately) that your AGI exceeds the threshold amount. Use your 2006 tax return as a guide in figuring your AGI (2006 Form 1040, line 38, or Form 1040NR, line 36) for 2007.
If you are filing Form 2555, 2555-EZ, or 4563, or you are excluding income from sources within Puerto Rico, you must refigure your AGI by adding back any foreign earned income and housing exclusion (2006 Form 2555, line 45, or 2006 Form 2555-EZ, line 18), foreign housing deduction (2006 Form 2555, line 50), income from American Samoa that you are excluding (2006 Form 4563, line 15), and income from Puerto Rico that you are excluding.
For 2007, the AMT refundable credit amount is reduced if your AGI is more than the applicable amount in the second column of the following table and is eliminated if your AGI is more than the applicable amount in the third column. Filing Status AGI That Reduces Credit AGI That Eliminates Credit Single $156,400 $278,900 Married filing jointly or qualifying widow(er) $234,600 $357,100 Married filing separately $117,300 $178,550 Head of household $195,500 $318,000


Credit refundable. The refundable amount of your credit is the amount by which your minimum tax credit for the year exceeds the amount your minimum tax credit would be without regard to the above rules.

Form 8801. To claim the refundable and nonrefundable parts of this credit, use the 2007 Form 8801, Credit for Prior Year Minimum Tax—Individuals, Estates, and Trusts.

[zetta]

More info:
My "nonrefundable" credit comes to $2,857, and my "refundable" credit comes to $2,143, which adds up to $5,000. My 2006 carryover was $24,640, and my 2007 carrover is 19,640. These amounts appear to have been transferred from the 8801 form to the 1040 form. Maybe TT is working right after all?

In the Deductions and Credits section of the interview, I see the credit for $2,857. In the 1040 itself, I see that a payment of $2,143 was added to the payments from the W-2.

[zetta]

Also wanted to post a link to a good forum for AMT information:
Fairmark Forum :: AMT and Equity Compensation