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?

[Nannr]

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?

[sjrcpa]

It's possible.

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

[Nannr]

We fully utilized the AMT NOL in previous years

[sjrcpa]

Then the return sounds like it is accurate.

[Nannr]

Thanks for the input---this means that the remaining regular NOL that we utilized for 2021 provided no tax savings

[sjrcpa]

If they're in AMT that is correct.

[Nannr · Accepted solution]

Thanks!