Form 8801, ISO exercise with AMT

[ptax255]

Hello, client exercised ISO and has AMT in the 2025 tax return. Shouldn't a form 8801 also be created/populated to track the AMT tax credit carryover? Is there anything I need to do to populate it? Form 6521 is already created and looks correct.

[sjrcpa]

The 8801 is for 2026.

[ptax255]

Per form instructions, it sounds to me like it needs to be completed in 2025 to report the carryover to 2026.

Use Form 8801 if you are an individual, estate, or trust to figure the minimum tax credit, if any, for alternative minimum tax (AMT) you incurred in prior tax years and to figure any credit carryforward to 2026.

[BobKamman · Accepted solution]

You can't stop reading the instructions after that first paragraph, "Purpose of Form."  Continue to the next paragraph:

Who Should File
Complete Form 8801 if you are an individual, estate, or trust that for 2024 had:
• An AMT liability and adjustments or preferences other than exclusion items,
• A credit carryforward to 2025 (on 2024 Form 8801, line 26), or
• An unallowed qualified electric vehicle credit (see the instructions for line 20).
File Form 8801 only if line 21 is more than zero. [Which is never going to happen unless you have a carryover amount from 2024 on Line 16.]

[ptax255]

I read that but was erring on the side of caution. Forgot the instructions can have conflicting information.