AMT Credit Carryforward Calculator 2026 β Form 8801 Minimum Tax Credit
Calculate your usable Minimum Tax Credit from prior AMT (especially ISO exercises). Track Form 8801 carryforward balance and project when your MTC will be fully used.
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From prior year Form 8801 or Form 8827 (corporations)
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Line 44 of Form 1040 (before other credits)
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From Form 6251 β your AMT for this year
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Form 8801 Calculation Summary
How the Minimum Tax Credit Works
AMT from ISO exercises creates a "deferral" AMT credit because the income will eventually be taxed β just on a different schedule. The MTC lets you recapture prior AMT paid once regular tax exceeds AMT.
Usable MTC = min(MTC Balance, Regular Tax β Tentative Min. Tax)
Remaining Balance = Opening Balance β Usable MTC + New AMT Added
Years to Deplete = Remaining Balance Γ· Average Annual (Regular Tax β AMT)
Remaining Balance = Opening Balance β Usable MTC + New AMT Added
Years to Deplete = Remaining Balance Γ· Average Annual (Regular Tax β AMT)
Example: MTC balance $85K. Regular tax $62K. Tentative AMT $45K.
Usable this year: min($85K, $62K β $45K) = min($85K, $17K) = $17,000
Remaining carryforward: $85K β $17K = $68,000
Tax savings: $17,000 credit against current year tax
Usable this year: min($85K, $62K β $45K) = min($85K, $17K) = $17,000
Remaining carryforward: $85K β $17K = $68,000
Tax savings: $17,000 credit against current year tax
Extended
Multi-Year MTC Projection Calculator
10-year projection of regular tax vs AMT, MTC usage schedule, and depletion chart
Project MTC usage over 10 years based on expected income growth. Enter your projections below.
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MTC Balance Depletion Over Time
MTC Remaining Balance Annual MTC Used
Year-by-Year MTC Usage Table
| Year | Regular Tax | Tentative AMT | Available Room | MTC Used | Remaining Balance |
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Frequently Asked Questions
What is the AMT Minimum Tax Credit (MTC)?
When you pay Alternative Minimum Tax (AMT) in a prior year β often from exercising Incentive Stock Options (ISOs) β that payment generates a Minimum Tax Credit (MTC). The credit can be used in future years when your regular tax exceeds your tentative minimum tax. It essentially gives you a refund of prior AMT paid once you're no longer in an AMT-paying position.
How do I calculate the usable MTC in a given year?
Usable MTC = min(AMT credit balance, Regular Tax β Tentative Minimum Tax). If your regular tax is higher than your AMT, you can use the difference to offset the MTC, up to your available balance. If regular tax β€ tentative AMT, you use none of the credit and it continues to carry forward.
What is the difference between regular AMT and deferral AMT?
Only "deferral" AMT generates an MTC. Deferral items include ISO exercises (the AMT spread creates a timing difference β you eventually recognize gain on sale). "Exclusion" AMT items (like standard deduction or certain tax preferences) do NOT generate an MTC. Most ISO-related AMT is deferral-type, which is why ISO exercises are the most common source of MTC carryforwards.
Can the MTC ever expire?
No, the MTC carryforward has no expiration date. It carries forward indefinitely until used. However, you can only use it in years where regular tax > tentative AMT. If you're consistently in AMT, the credit may never be usable. Pre-TCJA, there was a refundable MTC provision for long-held AMT credits, but TCJA made the corporate AMT refundable and provided a special AMT repeal transition for C corporations.
How does TCJA affect the AMT and MTC for individuals?
The 2017 TCJA increased the AMT exemption and phase-out thresholds dramatically, putting far fewer individuals in AMT. This means many taxpayers who paid AMT before 2018 are now in a regular tax position, making their MTC usable. However, the higher exemptions are temporary and scheduled to revert after 2025 (unless extended), which may put more people back in AMT after 2026.