Discussion:Alternative Minimum Tax Credit from ISOs
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Discussion Forum Index --> Tax Questions --> Alternative Minimum Tax Credit from ISOs
| 13 February 2007 | |
| Does anyone know anything about the minimum tax that people have paid due to ISO's etc. that is carried forward until a year the client is not subject to amt tax and then refunded.......... I read somewhere that if the tax has been carried from 2003 it can now be refunded. I can't remember where I read this and can't see anything on the IRS web site. Does anyone know anything about this? | |
| 13 February 2007 | |
| See Internal Revenue Code ยงSec. 53. Any minimum tax that is older than 3 years old will be refundable, starting in tax years beginning after 2006. If the refundable amount is less than $5,000, the entire amount can be refunded in one year. If the refundable amount is more than $5,000, the amount of the refund in a single year would be limited to the greater of $5,000 or 20% of the refundable credit. | |
| 29 March 2008 | |
| TP paid amt tax in 2003. How do we do this? My client is getting back the difference between amt and regular tax normally. Should the amt tax she paid due to ISO's be added to this? It appears that she can't get back below what her amt tax is for 2007. Would that be correct? I was hoping to get that tax in addition. Anybody seen this? I filled out some info on the 8801 in proseries that required entries from other years. It pulled out the amount from 2003, but did not add it to the amount we were already getting. Hope this is clear. | |
| 29 March 2008 | |
| Im not sure if I understand but this is what I know:
No credit is available if client it subject to AMT in current year. Refunds are available for credits > 3yrs old. The carry-forward amount is not the credit amount available in current year, part 1 of 8801 usually gives out a credit hair cut in my part of the country (high state income tax adjustment). Will | |
| 29 March 2008 | |
| I think I understand how this is being done. If my client would have owed amt tax, she would have gotten some refunded that was over 3 years old. But, since she was under the amt amount, she got back the difference which she would have gotten anyway. She has paid amt due to ISO's every year. I am marking the oldest as refunded and coming forward. So, if she exercises more ISO's and gets herself into some real amt, I could possibly get back amt that was paid in 2004 next year in 2008? Am I thinking right? | |
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