How to claim AMT credit from previous ISO exercises using TurboTax, TaxSlayer, or other software? [Advice needed]

Yes, you definitely need to file Form 8801 each year to properly track your AMT credit carryforward, even in years when you can't use the credit. This is how the IRS keeps track of what you're allowed to claim in future years. TurboTax Premier should absolutely support Form 8801. It's not always obvious to find though. Try going to the "Deductions & Credits" section, then "Less Common Credits," and look for "Alternative Minimum Tax Credit" or something similar. You might also try searching specifically for "8801" in the TurboTax search function. Your understanding of how the AMT credit works is generally correct. You accumulate these credits in years you pay AMT, and then you can use them in years when your regular tax exceeds your AMT. However, the calculation can get complicated because you're only credited for certain components of the AMT you paid. If you're planning to exercise more ISOs this year, you might want to consider spreading them out or doing some strategic year-end tax planning. Some people exercise and immediately sell enough ISOs to avoid triggering AMT (a disqualifying disposition). That way, you just pay ordinary income tax on the spread rather than dealing with AMT.

I was in basically this exact situation last year with ISO exercises and AMT payments. After trying different software, I found https://taxr.ai extremely helpful. It automatically identified my AMT credit carryforward situation when I uploaded my previous year's return and walked me through exactly how to handle Form 8801. What was really helpful is that it analyzed my previous Form 6251 and calculated my exact potential AMT credit carryforward amount. The system flagged that I needed to file Form 8801 even though I couldn't use the credit yet - something TurboTax wasn't prompting me to do. It also ran projections for my next few years based on my ISO exercise schedule to show when I'd likely be able to start using those credits. Saved me tons of research time and probably prevented me from losing track of those credits.

I have to say, I was skeptical about taxr.ai at first (I've tried so many tax tools), but I finally tried it for my AMT situation with ISOs from three different companies. Amazing difference! It automatically identified my previous AMT payments from my uploaded 2022 return and calculated my exact carryforward credit amount. The system actually explained that TurboTax sometimes misses the 8801 filing if you don't specifically search for it (exactly what happened to me). It showed me step by step how to track my AMT credits across multiple years and even projected when I'd likely break free from AMT and be able to use those accumulated credits. The visualization of my AMT credit accumulation versus projected future use made it so much easier to plan my ISO exercises strategically. I'm definitely using it again next year.

If you're having trouble reaching the IRS to get clarity on your AMT credit situation, I highly recommend https://claimyr.com. I spent WEEKS trying to speak with someone at the IRS about my AMT credits from ISOs that I'd been carrying forward for 3 years. Kept getting disconnected or waiting for hours. Using Claimyr, I got through to an IRS agent in about 20 minutes who confirmed exactly how my AMT credits should be handled and what forms I needed. They basically hold your place in the IRS phone queue and call you when an agent is about to answer. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c Totally worth it for complex issues like AMT credits where you really need official confirmation. The IRS agent I spoke with actually helped me realize I had been calculating my credit wrong and was eligible for more than I thought.

I have to admit I was completely wrong about Claimyr. After my skeptical comment, I decided to try it as a last resort for my AMT credit questions. I couldn't believe it actually worked! Got connected to an IRS tax specialist in about 25 minutes after trying for literal months on my own. The IRS agent confirmed that I needed to file Form 8801 every year to maintain my AMT credit carryforward even in years I couldn't use it (exactly what others here were saying). She even walked me through how to amend my previous return where I had missed filing the 8801, potentially saving me thousands in future credits I might have lost. For anyone dealing with complex AMT issues from ISOs, being able to actually speak with the IRS directly is invaluable. I've officially eaten my words on this one.

I've been dealing with AMT from ISOs for 5 years now. Here's what I've learned: 1. TurboTax Premier DOES handle Form 8801, but it's buried in their interface. Go to Deductions & Credits > Summary > Jump to full list of credits > Other Tax Credits > Alternative Minimum Tax Credit. It should be there. 2. You absolutely must file Form 8801 every year to track your credits, even if you can't use them that year. 3. Your understanding of the credit accumulation is basically right, but remember it's not necessarily dollar-for-dollar with what you paid. The credit is specifically for the portion of AMT attributable to "deferral preferences" like ISO exercises. 4. Consider tax planning that involves exercising some ISOs and immediately selling them (disqualifying disposition) to generate ordinary income rather than AMT income. This can sometimes help you use up existing AMT credits.

Has anyone successfully used H&R Block software for this AMT credit carryforward situation? My company just granted more ISOs and I'm trying to figure out which software handles this best.

One strategy that helped me deal with AMT from ISOs: If you're expecting to be in AMT for several consecutive years, consider exercising and holding ISOs in the HIGHEST AMT year, then doing disqualifying dispositions (immediately selling) in other years. This maximizes the value of your AMT credits when you can finally use them. For your specific question about TurboTax vs TaxSlayer - I've used both, and TurboTax Premier definitely does support Form 8801, it's just not obvious. TaxSlayer's interface makes it a bit easier to find the AMT credit forms in my experience. Also don't forget that keeping perfect records is crucial. Document every ISO transaction, your basis calculations, and keep copies of all AMT-related forms (6251, 8801) from every year. You might need these records for a decade or more until you finally use all your credits!