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Level 3
April 18, 2022
Solved

We have a NOL carryforward that reduces income but is added back in the AMT calculation resulting in an effective tax rate of greater than 70%---does this make sense?

Carried forward an NOL that has reduced 2021 AGI but adds back in the AMT calculation resulting in the NOL "credit" being fully taxed for an effective 70% tax rate on AGI?  Is there a glitch in the program or is this a possible scenario?

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NannrAnswer
Level 3
April 19, 2022

If they're in AMT that is correct.


Thanks!

6 replies

sjrcpa
Level 15
April 18, 2022

It's possible.

Also possible - you don't have the amount of the AMT NOL entered.

The more I know the more I don’t know.
NannrAuthor
Level 3
April 18, 2022

We fully utilized the AMT NOL in previous years

sjrcpa
Level 15
April 18, 2022

Then the return sounds like it is accurate.

The more I know the more I don’t know.