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    #1

    Nol - 1040

    Client, individual return has W-2 of $86,122.
    Filing Status: Single

    Following on 1040

    Line 21: (375,615) - NOL from previous year
    Line 22: (289,493)
    AGI = (289,493)

    Std Deduction = 5,700

    Line 43: Taxable income = 0.00

    Tax = 0.00

    BUT line 45 has AMT of $10,250. I do not understand why? (Using Drake software)

    Thanks!
    Tags: None
    #2

    <Single client has 86K W2 income and a 375K carryover NOL from the previous year. Drake shows AMT due of $10,250 . Why?
    Well, it's not a Drake thing. TaxAct and TaxWise show the same thing. Worse yet, they show that the NOL is totally used up and nothing carries to next year.

    Don't seem right to me either ... gotta read the instructions for the 6251.

    Comment

      #3
      Look at the form 6251instructions regarding line 12. This seems to be a deduction which
      may reduce the AMT.

      Comment

        #4
        Software takes off the AMT on the 6251 line11. Did you recompute and put in the AMT NOL on 6251 line 12?
        JG

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