Fillable Form 8801

What is Form 8801?

Form 8801, Credit for Prior Year Minimum Tax - Individuals, Estates, and Trusts, is an Internal Revenue Service (IRS) form used by individuals, estates, and trusts to figure the amount of refundable and nonrefundable minimum tax credit (MTC) and how much MTC will be carried forward into the next year.

Who needs to use Form 8801?

Form 8801 should be filed by an individual, estate, or trust that has or had one of the following:

• An AMT liability and adjustments or preferences other than exclusion items
• A credit carryforward to 2021 (on 2020 Form 8801, line 26)
• An unallowed qualified electric vehicle credit (see the instructions for line 20)

How to fill out Form 8801?

Form 8801 is a simple, if long, form to fill out. Make sure to download the form in PDF format so as to ensure that all information entered remains intact regardless of how the form is opened or submitted. It will also be beneficial to have the relevant documents prepared to make sure that all the information being entered in the form is correct and updated.

If more details or information is required on particular steps of this form, you may consult the instructions for Form 8801 on the IRS website.

Name(s) as Shown on Return

Enter your name as shown on the relevant tax return.

Identifying Number

Enter the number assigned to you for identification purposes.

Part I - Net Minimum Tax on Exclusion Items

Line 1

Add Lines 1 and 2e of your 2020 Form 6251 and enter the sum.

Line 2

Enter any adjustments and preferences that are treated as exclusion items.

Line 3

Enter the minimum tax credit net the operating loss deduction.

Line 4

Add Lines 1, 2, and 3 and enter the sum. If the amount is zero or less, enter -0- on this line and on Line 15 and proceed to Part II. If the amount is greater than $745,200 and you were married filing separately for 2020, consult the instructions for IRS Form 8801 on the IRS website for more information on how to proceed.

Line 5

Enter $113,400 if married filing jointly or a qualifying widow(er) for 2020. If single or head of household for 2020, enter $72,900. If you are married filing separately for 2020, enter $56,700. For estates and trusts, enter $25,400.

Line 6

Enter $1,036,800 if married filing jointly or a qualifying widow(er) for 2020. If single or head of household, or married filing separately for 2020, enter $518,400. For estates and trusts, enter $84,800

Line 7

Subtract Line 6 from Line 4 and enter the difference. If the difference is zero or less, enter -0- on this line and on Line 8 instead and proceed to Line 9.

Line 8

Multiply Line 7 by 25% (0.25) and enter the product.

Line 9

Subtract Line 8 from Line 5 and enter the difference. If the difference is zero or less, enter -0- on this line instead.

Line 10

Subtract Line 9 from Line 4 and enter the difference. If the difference is zero or less, enter -0- here and on Line 15 and proceed to Part II.

Line 11

Read the instructions for this Line carefully to determine what amount to enter in this Line.

If, for 2020, you filed Form 2555, see the instructions on the IRS website for the amount to enter here.

If for 2020, you reported capital gain distributions directly on Form 1040, 1040-SR, or 1040-NR, Line 7 reported qualified dividends on Form 1040, 1040-SR, or 1040-NR, Line 3a, or had a gain on both Lines 15 and 16 of Schedule D of Form 1040 or Schedule D of Form 1041, complete Part III of Form 8801 and enter the amount from Line 55.

For all others, if Line 10 is $197,900 or less (or $98,950 or less if married filing separately for 2020), multiply Line 10 by 26% (0.26) and enter the product. Otherwise, multiply Line 10 by 28% (0.28) and subtract $3,958 ($1,979 if married filing separately for 2020) from the result.

Line 12

Enter the minimum foreign tax credit on exclusion items.

Line 13

Subtract Line 12 from Line 11 and enter the difference.

Line 14

Enter the amount from your 2020 Form 6251, Line 10, or 2020 Form 1041, Schedule I, Line 53.

Line 15

Subtract Line 14 from Line 13 and enter the difference. If the difference is zero or less, enter -0- instead.

Part II - Minimum Tax Credit and Carryforward to 2022

Line 16

Enter the amount from your 2020 Form 6251, Line 11, or 2020 Form 1041, Schedule I, Line 54.

Line 17

Enter the amount from Line 15.

Line 18

Subtract Line 17 from Line 16 and enter the difference. If the difference is less than zero, enter it as a negative amount.

Line 19

Enter the amount from your 2020 Form 8801, Line 26.

Line 20

Enter your 2020 unallowed qualified electric vehicle credit.

Line 21

Add Lines 18 through 20 and enter the sum. If the sum is zero or less, stop here and consult the instructions for Form 8801 on the IRS website on how to proceed.

Line 22

Enter your 2021 regular income tax liability minus allowable credits.

Line 23

Enter the amount from your 2021 Form 6251, Line 9, or 2021 Form 1041, Schedule I, Line 52

Line 24

Subtract Line 23 from Line 22 and enter the difference. If the difference is zero or less, enter -0- instead.

Line 25

Enter the smaller of Line 21 or Line 24 here and on your 2021 Schedule 3 (Form 1040), Line 6b or Form 1041, Schedule G, Line 2c.

Line 26

Subtract Line 25 from Line 21 and enter the difference.

Part III - Tax Computation Using Maximum Capital Gains Rates

Note that if you haven’t completed the 2020 qualified dividends and capital gain tax worksheet, the 2020 Schedule D tax worksheet, or Part V of the 2020 Schedule D (Form 1041), see the instructions on the IRS website before completing this part of the form.

Line 27

Enter the amount from Line 10. If you filed Form 2555 for 2020, enter the amount from Line 3 of the Foreign Earned Income Tax Worksheet in the instructions for that form.

Line 28

Enter the amount from Line 4 of your 2020 Qualified Dividends and Capital Gain Tax Worksheet, the amount from Line 13 of your 2020 Schedule D Tax Worksheet, or the amount from Line 26 of the 2020 Schedule D (1041), whichever applies.

If you figured your 2020 tax using the 2020 QUalified Dividends and Capital Gain Tax Worksheet, skip Line 29 and enter the amount from Line 28 on Line 30. Otherwise, proceed to Line 29.

Line 29

Enter the amount from Line 19 of your 2020 Schedule D (Form 1040) or Line 18b, column (2), of the 2020 Schedule D (1041).

Line 30

Add Lines 28 and 29, and enter the smaller amount between the sum or the amount from Line 10 of your 2020 Schedule D Tax Worksheet.

Line 31

Enter the smaller amount between Line 27 or Line 30.

Line 32

Subtract Line 31 from Line 27 and enter the difference.

Line 33

If Line 32 is $197,900 or less ($98,950 or less if married filing separately for 2020), multiply Line 32 by 26% (0.26). Otherwise, multiply Line 32 by 28% (0.28) and subtract $3,958 ($1,979 if married filing separately for 2020) from the result.

Line 34

Enter one of the following amounts based on which conditions best apply to you:

• Enter $80,000 if married filing jointly or qualifying widow(er) for 2020
• Enter $40,000 if single or married filing separately for 2020
• Enter $53,600 if head of household for 2020
• Enter $2,650 for an estate or trust.

Line 35

Enter the amount from Line 5 of your 2020 Qualified Dividends and Capital Gain Tax Worksheet, the amount from Line 14 of your 2020 Schedule D Tax Worksheet, or the amount from Line 27 of the 2020 Schedule D (Form 1041), whichever applies.

If you did not complete either the worksheet or Part V of the 2020 Schedule D (Form 1041), enter the amount from your 2020 Form 1040, 1040-SR, or 1040-NR, Line 15, or 2020 Form 1041, Line 23, whichever applies. If the amount is zero or less, enter -0-.

Line 36

Subtract Line 35 from Line 34 and enter the difference. If the difference is zero or less, enter -0- instead.

Line 37

Enter the smaller amount between Line 27 or Line 28.

Line 38

Enter the smaller amount between Line 36 or Line 37.

Line 39

Subtract Line 38 from Line 37.

Line 40

Enter one of the following amounts based on which conditions best apply to you:

• Enter $441,450 if single for 2020
• Enter $248,300 if married filing separately for 2020
• Enter $496,600 if married filing jointly or qualifying widow(er) for 2020
• Enter $469,050 if head of household for 2020
• Enter $13,150 for an estate or trust

Line 41

Enter the amount from Line 36.

Line 42

For Form 1040, 1040-SR, or 1040-NR filers, enter the amount from Line 5 of your 2020 Qualified Dividends and Capital Gain Tax Worksheet or the amount from Line 21 of your 2020 Schedule D Tax Worksheet, whichever applies. If neither worksheet was completed, consult the Form 8801 instructions on the IRS site for details on how to proceed.

For Form 1041 filers, enter the amount from Line 27 of your 2020 Schedule D (Form 1041) or Line 18 of your 2020 Schedule D Tax Worksheet, whichever applies. If neither this worksheet nor Part V of the 2020 Schedule D (Form 1041) has been completed, enter the amount from your 2020 Form 1041, Line 23. If the amount is zero or less, enter -0-.

Line 43

Add Lines 41 and 42 and enter the sum.

Line 44

Subtract Line 43 from Line 40 and enter the difference. If the difference is zero or less, enter -0- instead.

Line 45

Enter the smaller amount between Line 39 or Line 44.

Line 46

Multiply Line 45 by 15% (0.15) and enter the product.

Line 47

Add Lines 38 and 45 and enter the sum. If Line 47 and 27 are the same, skip Lines 48 through 52 and go to Line 53. Otherwise, proceed to Line 48.

Line 48

Subtract Line 47 from Line 37 and enter the difference.

Line 49

Multiply Line 48 by 20% (0.20) and enter the product.

If Line 29 is zero or blank, skip Lines 50 through 52 and go to Line 53. Otherwise, proceed to Line 50.

Line 50

Add Lines 32, 47, and 48 and enter the sum.

Line 51

Subtract Line 50 from Line 27 and enter the difference.

Line 52

Multiply Line 51 by 25% (0.25) and enter the product.

Line 53

Add Lines 33, 46, 49, and 52 and enter the sum.

Line 54

If Line 27 is $197,900 or less ($98,950 or less if married filing separately for 2020), multiply Line 27 by 26% (0.26). Otherwise, multiply Line 27 by 28% (0.28) and subtract $3,958 ($1,979 if married filing separately for 2020) from the result.

Line 55

Enter the smaller of Line 53 or Line 54 here and on Line 11. If you filed Form 2555 for 2020, don’t enter this amount on Line 11. Instead, enter it on Line 4 of the Foreign Earned Income Tax Worksheet in the instructions for Line 11 on the IRS website.

Tips when filling out Form 8801

Tax return form 8801 is a simple form to fill out, but its length means that it is doubly important to double-check the information being entered to ensure that everything is correct and updated. This will help to avoid any legal issues from providing the wrong information to the IRS.

Keep the form in a safe and secure area. Form 8801 IRS contains some sensitive information, most notably your name and tax information, so it is important that it be kept in a safe area and submitted through trustworthy means to avoid any issues such as identity theft or misfiling forms.

Practice good contract management. Keep a copy of the accomplished form in a safe area. This will be useful for possible future legal purposes or as a backup in the event that something happens to the original copy.