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You can only claim this credit in a year when you dont have to pay AMT. You cant use the credit to reduce your AMT liability in the future. However, AMT credit carryforward is granted for unused portion of the credit to future years.
If you are subject to AMT, you can carry over the difference between the AMT that you paid and your net tax liability for seven years. The carryover amount can be deducted from your regular tax liability in the next seven years or until it is used up.
Then, subtract your AMT exemption (if eligible), which for the 2023 tax year is $81,300 for individuals, $63,250 for married couples filing separately, and $126,500 for married couples filing jointly or qualifying widow(er).
The Refundable AMT Credit No longer available, however, is the tax benefit available to investors from 2007 to 2012 which made their unused AMT credits refundable. This tax benefit was instituted in 2007 to help investors who found that the AMT credit did not docHubly lower their federal income tax bill.
The Alternative Minimum Tax (AMT) is a separate tax system that requires some taxpayers to calculate their tax liability twicefirst, under ordinary income tax rules, then under the AMTand pay whichever amount is highest.
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Claiming AMT Credit (Form 8801) In order to claim your AMT credit, you will need to file IRS form 8801. You typically will not be able to claim 100% of your AMT credit right away due to limitations. Recall that when calculating AMT you calculate your tax in two ways.
How to Reduce the AMT. A good strategy for minimizing your AMT liability is to keep your adjusted gross income (AGI) as low as possible. Some options: Participate in a 401(k), 403(b), SARSEP​, 457(b) plan, or SIMPLE IRA by making the maximum allowable salary deferral contributions.
Claim the AMT credit while filing your current year tax return by filling out Form 8801 and filing it along with your tax return. Carry forward and track the remaining credit you were not allowed to use in the current year.

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