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AMT credit recovery

How much of a prior-year AMT bill comes back this year via Form 8801.

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AMT credit recovery

After an ISO exercise year with AMT, you carry forward an AMT credit. Model how much of it comes back this year.

Reg tax − TMT
$23,217
Room for credit
Credit recovered
$23,217
Remaining to carry forward
$21,783

Credit does not expire · carryforward tracked on Form 8801 · timing ISO dispositions can accelerate recovery

How to read the result

AMT paid on ISO exercise creates a credit carryforward tracked on Form 8801. In a future year where regular tax exceeds tentative minimum tax, the difference becomes available to absorb the credit.

This tool is educational. It uses 2025 single-filer federal brackets, a simplified state-tax model, and does not substitute for a CPA review of your specific facts. For a second set of eyes on a meaningful event, match with a fiduciary advisor who routinely works with equity compensation.

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Pre-IPO equity tax checklist

Plan your next vesting event with confidence

Free PDF checklist. Quarterly tax-planning cadence for RSU holders, AMT tripwires for ISO exercises, and the 10b5-1 calendar our reviewers send clients.