nonrefundable_personal_credits - credits are lost if not...

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Limitations on nonrefundable personal credits (for AMT purposes) For tax years beginning in 2008 or 2009 the total amount of nonrefundable personal tax credits that can be used to offset AMT is limited. This is in addition to any income limitation imposed on each credit, the aggregate amount of the nonrefundable personal credits, other than the adoption, child tax, and retirement savings contributions credits cannot exceed the excess, if any of the regular tax liability, as defined in Code Sec. 26(b), over the tentative alternative minimum tax (AMT) liability determined without regard to the AMT foreign tax credit. Because of this limitation, it is important to note the order in which the nonrefundable personal credits are claimed since certain credits may be carried forward to future years while other
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Unformatted text preview: credits are lost if not used in the current year. The nonrefundable personal credits are claimed in the following order: 1. child and dependent care credit 2. credit for the elderly and permanently and totally disabled 3. mortgage credit 4. child tax credit 5. Hope and Lifetime Learning credits 6. adoption credit 7. lower income saver's credit, 8. the DC homebuyer credit 9. the nonbusiness energy property credit 10. and the residential energy efficient property credit This allows most low- to middle-income taxpayers to maximize the utility of their nonrefundable personal tax credits against both their regular tax and their alternative minimum tax liabilities....
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