Scott B. Price, CPA

Minimum Tax Credit Relief

January 5, 2009

Certain taxpayers who have unused Alternative Minimum Tax credits are now (beginning in tax years on or after January 1, 2008 and before January 1, 2013) allowed to claim a refundable credit of 50% ( up from 20%) of the long-term (generated three years ago or more) unused AMT credits per year for the calendar years 2007 through 2012. These credits are no longer subject to an income limitation phase-out or the $5,000 floor.

We will provide you guidance in the filing instructions for your tax return or separate estimated payments on how to comply with these new requirements if they are applicable to your situation.