A taxpayer is paying alternative minimum tax this year. The AMT is primarily due to timing differences, resulting in the creation of a minimum tax credit. The taxpayer will apply the minimum tax credit

Question

Quizplus · Accepted Answer

The minimum tax credit can be used to offset regular tax in future years when the regular tax exceeds the tentative minimum tax, allowing the taxpayer to recover some of the AMT paid in prior years.

A Taxpayer Is Paying Alternative Minimum Tax This Year