Table of Contents
The AMT is caused by two types of adjustments and preferences—deferral items and exclusion items. Deferral items (for example, depreciation) generally don't cause a permanent difference in taxable income over time. Exclusion items (for example, the standard deduction), on the other hand, do cause a permanent difference. The minimum tax credit is allowed only for the AMT caused by deferral items.
These line 1 instructions are for estates and trusts only. Skip lines 1 through 3 of Form 8801. To figure the amount to enter on line 4 of Form 8801, complete Parts I and II of another 2014 Form 1041, Schedule I, as a worksheet. After completing lines 1 and 7 of Schedule I, complete the rest of Part I of Schedule I by taking into account only exclusion items (the amounts included on lines 2 through 6, 8, and 9, and any other adjustments related to exclusion items included on line 23 of Schedule I). On line 24 of Schedule I, use the minimum tax credit net operating loss deduction (MTCNOLD). However, don't limit the MTCNOLD to 90% of the total of lines 1 through 23 of Schedule I. (See the instructions for line 3 of Form 8801 for how to figure the MTCNOLD.) In Part II of Schedule I, complete lines 35 and 36 without taking into account any basis adjustments arising from deferral items. If the amount on Schedule I, line 29, is zero or less, enter 0 on Form 8801, line 4. Otherwise, enter on Form 8801, line 4, the amount from Schedule I, line 29, adjusted for exclusion items that were allocated to the beneficiary.
Note.
If you complete Parts I and II of a 2014 Form 1041, Schedule I, as a worksheet to figure the amount to enter on 2015 Form 8801, line 4, don't attach that worksheet Schedule I to your tax return. Instead, keep it for your records.
Enter on this line the adjustments and preferences treated as exclusion items (except the standard deduction). Exclusion items are only the following AMT adjustments and preferences: itemized deductions (including any investment interest expense reported on Schedule E), certain taxexempt interest, depletion, the section 1202 exclusion, and any other adjustments related to exclusion items. Don't include the standard deduction. It has already been included on line 1. Combine lines 2 through 5, 7 through 9, 12, and 13 of your 2014 Form 6251. Don't include any amount from line 15 of the 2014 Form 6251. Instead, include the exclusion item amount from the Schedule(s) K1 (Form 1041) you received for 2014. That amount is shown in box 12 with code J. If you included on line 27 of the 2014 Form 6251 any adjustments related to exclusion items, also include those adjustments in the amount you enter on line 2. Enter the total on line 2.
Your MTCNOLD is the total of the minimum tax credit net operating loss (MTCNOL) carryovers and carrybacks to 2014. Your MTCNOL is figured as follows.
Your MTCNOL is the excess of the deductions (excluding the MTCNOLD) over the income used to figure alternative minimum taxable income (AMTI) taking into account only exclusion items. Figure this excess with the modifications in section 172(d) taking into account only exclusion items. (That is, the section 172(d) modifications must be figured separately for the MTCNOL.)
For example, the limitation of nonbusiness deductions to the amount of nonbusiness income must be figured separately for the MTCNOL using only nonbusiness income and deductions but taking into account only exclusion items. However, ignore the disallowance of the deduction for personal exemptions under section 172(d)(3) because it has already been taken into account to figure AMTI attributable only to exclusion items.
To determine the amount of MTCNOL that may be carried to tax years other than 2014, apply sections 172(b)(2) and 172(d) with appropriate modifications to take into account only exclusion items.
If your filing status was married filing separately for 2014 and line 4 is more than $242,450, you must include an additional amount on line 4. If line 4 is $406,650 or more, include an additional $41,050 on line 4. Otherwise, include 25% of the excess of the amount on line 4 over $242,450. For example, if the amount on line 4 is $262,450, enter $267,450 instead—the additional $5,000 is 25% of $20,000 ($262,450 minus $242,450).
Don't enter more than the sum of your 2014 earned income plus $7,250 if you didn't file a joint return for 2014, at least one of your parents was alive at the end of 2014, and one of the following statements is true.

You were under age 18 at the end of 2014.

You were age 18 at the end of 2014 and didn't have earned income that was more than half of your support.

You were a fulltime student at least age 19 but under age 24 at the end of 2014 and didn't have earned income that was more than half of your support.
Certain January 1 birthdays. If you were born on January 1, 1997, you are considered to be 18 at the end of 2014. The limitation just described applies
to you only if you didn't have earned income that was more than half of your support.
If you were born on January 1, 1996, you are considered to be 19 at the end of 2014. The limitation just described applies to you only if you were a fulltime student who didn't have earned income that was more than half of your support.
If you were born on January 1, 1991, you are considered to be 24 at the end of 2014. The limitation just described doesn't apply to you.
If you filed Form 1040NR for 2014 and had a net gain on the disposition of U.S. real property interests, line 10 can't be less than the smaller of that net gain or line 4.
If for 2014 you claimed the foreign earned income exclusion, housing exclusion, or housing deduction on Form 2555 or Form 2555EZ, you must use the Foreign Earned Income Tax Worksheet in these instructions to figure the amount to enter on line 11.
Before you begin:

1.  Enter the amount from Form 8801, line 10  1.  
2a.  Enter the amount from your (and your spouse's if filing jointly) 2014 Form 2555, lines 45 and 50, or 2014 Form 2555EZ, line 18  2a.  
b.  Enter the total amount of any itemized deductions or exclusions you couldn't claim because they are related to excluded income  2b.  
c.  Subtract line 2b from line 2a. If zero or less, enter 0  2c.  
3.  Add lines 1 and 2c  3.  
4.  Tax on the amount on line 3.

4.  
5.  Tax on the amount on line 2c. If line 2c is $182,500 or less ($91,250 or less if married filing separately for 2014), multiply line 2c by 26% (0.26). Otherwise, multiply line 2c by 28% (0.28) and subtract $3,650 ($1,825 if married filing separately for 2014) from the result  5.  
6.  Subtract line 5 from line 4. Enter the result here and on Form 8801, line 11  6. 
If you made an election to claim the foreign tax credit on your 2014 Form 1040 (or Form 1040NR) without filing Form 1116, enter on Form 8801, line 12, the amount from your 2014 Form 1040, line 48 (or Form 1040NR, line 46). Otherwise, the minimum tax foreign tax credit on exclusion items (MTFTCE) is your 2014 AMT foreign tax credit (AMTFTC) refigured using only exclusion items. Follow these steps to figure your MTFTCE.
You must adjust your foreign source qualified dividends before you include those amounts on line 1a of the MTFTCE Form 1116 if:

Line 53 of Form 8801 is smaller than line 54, and

Line 32 of Form 8801 is greater than zero.
But you don't need to make any adjustments if:

You qualified for the adjustment exception under Qualified Dividends and Capital Gain Tax Worksheet (Individuals), Qualified Dividends Tax Worksheet (Estates and Trusts), or Adjustments to foreign qualified dividends under Schedule D Filers, whichever applies, in the Form 1116 instructions when you completed your regular tax Form 1116 (or you would have qualified for that adjustment exception if you had completed a regular tax Form 1116) for 2014, and

Line 32 of Form 8801 isn't more than $182,500 ($91,250 if married filing separately for 2014 or if you checked filing status box 3, 4, or 5 on Form 1040NR for 2014).
To adjust your foreign source qualified dividends, multiply your foreign source qualified dividends in each separate category by 0.5357 (instead of 0.3788) if the foreign source qualified dividends are taxed at a rate of 15%, and by 0.7143 (instead of 0.5051) if they are taxed at a rate of 20%. If you have foreign source qualified dividends that are taxed at a rate of 0%, you adjust them by not including them on line 1a of MTFTCE Form 1116. Include the results on line 1a of the applicable MTFTCE Form 1116. But don't adjust the amount of any foreign source qualified dividend you elected to include on line 4g of Form 4952.
If you had no 2014 capital gains or losses other than capital gain distributions from box 2a of Form(s) 1099DIV or substitute statement(s), you must adjust your foreign source capital gain distributions before you include those amounts on line 1a of the MTFTCE Form 1116 if you are required to adjust your foreign source qualified dividends under the rules just described or you would be required to adjust your foreign source qualified dividends if you had any.
To adjust your foreign source capital gain distributions, multiply your foreign source capital gain distributions in each separate category by 0.5357 (instead of 0.3788) if the foreign source capital gain distributions are taxed at a rate of 15%, and by 0.7143 (instead of 0.5051) if they are taxed at a rate of 20%. If you have foreign source capital gain distributions that are taxed at a rate of 0%, you adjust them by not including them on line 1a of MTFTCE Form 1116. Include the results on line 1a of the applicable MTFTCE Form 1116. But don't adjust the amount of any foreign source capital gain distribution you elected to include on line 4g of Form 4952.
Use Worksheet A in the instructions for the 2014 Form 1116 to determine the adjustments you must make to your foreign source capital gains or losses if you have foreign source capital gains or losses in no more than two separate categories and any of the following apply.

You figured your 2014 tax using the Qualified Dividends and Capital Gain Tax Worksheet in the Form 1040 instructions and (a) line 3 of that worksheet minus the amount on line 4e of Form 4952 that you elected to include on line 4g of Form 4952 is zero or less, (b) line 7 of that worksheet is zero, or (c) line 25 of that worksheet is equal to or greater than line 26.

You figured your 2014 tax using the Qualified Dividends and Capital Gain Tax Worksheet in the Form 1040NR instructions and (a) line 3 of that worksheet is zero, (b) line 5 of that worksheet is zero, or (c) line 23 of that worksheet is equal to or greater than line 24.

Line 15 or 16 of your 2014 Schedule D (Form 1040) (column (2) of line 18a or 19 of Schedule D (Form 1041)) is zero or a loss.

You figured your 2014 tax using Schedule D (Form 1041) and (a) line 22 of Schedule D minus the amount on line 4e of Form 4952 that you elected to include on line 4g of Form 4952 is zero or less, (b) line 27 of Schedule D is zero, or (c) line 43 of Schedule D is equal to or greater than line 44.

You figured your 2014 tax using the Schedule D Tax Worksheet in the Schedule D (Form 1040) instructions and (a) line 18 of that worksheet is zero, (b) line 9 of that worksheet is zero, or (c) line 43 of that worksheet is equal to or greater than line 44.

You figured your 2014 tax using the Schedule D Tax Worksheet in the Schedule D (Form 1041) instructions and (a) line 17 of that worksheet is zero, (b) line 9 of that worksheet is zero, or (c) line 42 of that worksheet is equal to or greater than line 43.

You weren't required to make adjustments to your foreign source qualified dividends under the rules described earlier (or you wouldn't have been required to make those adjustments if you had foreign source qualified dividends).
Use Worksheet B if you:

Can't use Worksheet A,

Had 2014 foreign source capital gains and losses in no more than two separate categories,

Didn't have any item of unrecaptured section 1250 gain or 28% rate gain or loss, and

Didn't have any capital gains taxed at a rate of 0% or 20%.
When you complete Worksheet A or Worksheet B, don't use any foreign source capital gains you elected to include on line 4g of Form 4952. Use 0.5357 instead of 0.3788 to complete lines 11, 13, and 15 of Worksheet B and to complete lines 8, 11, and 17 of the Line 15 Worksheet for Worksheet B.
If you don't qualify to use Worksheet A or Worksheet B, use the instructions for Capital Gains and Losses in Pub. 514, Foreign Tax Credit for Individuals, to determine the adjustments you make.

Line 53 of Form 8801 is smaller than line 54, and

Line 32 of Form 8801 is greater than zero.

You qualified for the adjustment exception under Qualified Dividends and Capital Gain Tax Worksheet (Individuals), Qualified Dividends Tax Worksheet (Estates and Trusts), or Adjustments to foreign qualified dividends under Schedule D Filers, whichever applies, in the Form 1116 instructions when you completed your regular tax Form 1116 (or you would have qualified for that adjustment exception if you had completed a regular tax Form 1116) for 2014, and

Line 32 of Form 8801 isn't more than $182,500 ($91,250 if married filing separately for 2014 or if you checked filing status box 3, 4, or 5 on Form 1040NR for 2014).
Follow these steps to complete, for the MTFTCE, the Worksheet for Line 18 in the Form 1116 instructions.

Enter the amount from Form 8801, line 4, on line 1 of the worksheet.

Skip lines 2 and 3 of the worksheet.

Enter the amount from Form 8801, line 51, on line 4 of the worksheet.

Multiply line 4 of the worksheet by 0.1071 (instead of 0.3687). Enter the result on line 5 of the worksheet.

Enter the amount from Form 8801, line 48, on line 6 of the worksheet.

Multiply line 6 of the worksheet by 0.2857 (instead of 0.4949). Enter the result on line 7 of the worksheet.

Enter the amount from Form 8801, line 45, on line 8 of the worksheet.

Multiply line 8 of the worksheet by 0.4643 (instead of 0.6212). Enter the result on line 9 of the worksheet.

Enter the amount from Form 8801, line 38, on line 10 of the worksheet.

Complete lines 11 and 12 of the worksheet as instructed on the worksheet.
Enter any qualified electric vehicle credit not allowed for 2014 solely because of the limitation under section 30(b)(3)(B) (as in effect prior to the amendment of section 30 by Public Law 1115, the American Recovery and Reinvestment Tax Act of 2009).
If line 21 is zero or less, you don't have a minimum tax credit or a credit carryforward. Don't complete the rest of this form and don't file it.
Follow the instructions below and refer to your 2015 income tax return to figure the amount to enter on line 22.
If your 2014 taxable income was zero or less, enter 0 on Form 8801, line 35. You also must take one of the following actions, whichever applies to you, before completing lines 28, 29, and 30 of Part III.

Complete lines 2 through 6 of the Qualified Dividends and Capital Gain Tax Worksheet in the 2014 Instructions for Form 1040.

Complete lines 2 through 4 of the Qualified Dividends and Capital Gain Tax Worksheet in the 2014 Instructions for Form 1040NR.

Complete lines 2 through 13 of the Schedule D Tax Worksheet in the 2014 Instructions for Schedule D (Form 1040) or the 2014 Instructions for Schedule D (Form 1041), whichever applies.

Complete lines 2 through 4 of the Qualified Dividends Tax Worksheet in the 2014 Instructions for Form 1041.

Complete lines 22 through 26 of the 2014 Schedule D (Form 1041).
To determine which worksheet or form above applies to you, see the 2014 Instructions for Form 1040, line 44; Form 1040NR, line 42; or Form 1041, Schedule G, line 1a.
Follow the instructions below to figure the amounts to enter on lines 28, 29, and 30 if, for 2014:

You filed Form 1040NR and didn't use the Schedule D Tax Worksheet to figure your tax,

You filed Form 1041 and didn't use the Schedule D Tax Worksheet or Part V of Schedule D (Form 1041) to figure your tax, or

You filed Form 2555 or 2555EZ and have a capital gain excess (defined later).
Otherwise, complete lines 28, 29, and 30 following the instructions for those lines on the form.

Reduce the amount on line 3 of your 2014 Qualified Dividends and Capital Gain Tax Worksheet or line 9 of your 2014 Schedule D Tax Worksheet (but not below zero) by your capital gain excess.

Reduce the amount on line 2 of your 2014 Qualified Dividends and Capital Gain Tax Worksheet or line 6 of your 2014 Schedule D Tax Worksheet (but not below zero) by any of your capital gain excess not used in (1).

Reduce the amount on your 2014 Schedule D (Form 1040), line 18, (but not below zero) by your capital gain excess.

Include your capital gain excess as a loss on line 16 of your 2014 Unrecaptured Section 1250 Gain Worksheet in the 2014 Instructions for Schedule D (Form 1040).
If for 2014 you filed Form 1040NR and Form 8801, line 32, is $182,500 or less ($91,250 or less if you checked filing status box 3, 4, or 5 on Form 1040NR for 2014), multiply line 32 by 26% (0.26). Otherwise, multiply line 32 by 28% (0.28) and subtract $3,650 ($1,825 if you checked filing status box 3, 4, or 5 on Form 1040NR for 2014) from the result.
If for 2014 you filed Form 1040NR, enter $36,900 ($73,800 if you checked filing status box 6 on Form 1040NR for 2014).
If for 2014 you filed Form 1040NR, enter on Form 8801, line 35, the amount from line 5 of your 2014 Qualified Dividends and Capital Gain Tax Worksheet in the Instructions for Form 1040NR, line 42, or the amount from line 14 of your 2014 Schedule D Tax Worksheet in the 2014 Instructions for Schedule D (Form 1040), whichever applies. If you didn't complete either worksheet, enter the amount from Form 1040NR, line 41; if zero or less, enter 0.
Follow the instructions below to figure the amount to enter on line 42.
If for 2014 you filed Form 1040NR and Form 8801, line 27, is $182,500 or less ($91,250 or less if you checked filing status box 3, 4, or 5 on Form 1040NR for 2014), multiply line 27 by 26% (0.26). Otherwise, multiply line 27 by 28% (0.28) and subtract $3,650 ($1,825 if you checked filing status box 3, 4, or 5 on Form 1040NR for 2014) from the result.
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