Updated October 19, 2026. Quick answer: Form 8801 is the Credit for Prior Year Minimum Tax for individuals, estates and trusts. The instructions say “File Form 8801 only if line 21 is more than zero.” The credit on line 25 goes to Schedule 3 (Form 1040), line 6b, or to Form 1041, Schedule G, line 2c, and any unused amount carries to 2026.
What Form 8801 is for
The instructions give the purpose: “Use Form 8801 if you are an individual, estate, or trust to figure the minimum tax credit, if any, for alternative minimum tax (AMT) you incurred in prior tax years and to figure any credit carryforward to 2026.”
They also explain why the credit exists at all. “The minimum tax credit is allowed only for the AMT caused by deferral items.” The line between the two kinds of items is stated this way: “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.”
Who should file
The instructions say to complete the form if you are an individual, estate, or trust that for 2024 had one of three things: “An AMT liability and adjustments or preferences other than exclusion items,” “A credit carryforward to 2025 (on 2024 Form 8801, line 26), or” “An unallowed qualified electric vehicle credit”.
The stop rule is on line 21: “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.”
How the form is built
The form says it attaches to the return: “Attach to Form 1040, 1040-SR, 1040-NR, or 1041.” It has three parts.
| Part | As printed on the form |
|---|---|
| Part I | “Net Minimum Tax on Exclusion Items” |
| Part II | “Minimum Tax Credit and Carryforward to 2026” |
| Part III | “Tax Computation Using Maximum Capital Gains Rates” |
Part III is needed only in some cases. The form says “Complete Part III only if you are required to do so by line 11 or by the Foreign Earned Income Tax Worksheet in the instructions.” The line by line worksheet in Part III and the instruction worksheets are not reproduced here.
Part I and Part II lines, as printed
Part I figures the net minimum tax on exclusion items from the 2024 return. Part II then sets that against the prior year amounts and the 2025 regular tax. A selection of the lines:
| Line | As printed on the form |
|---|---|
| Line 1 | “Combine lines 1 and 2e of your 2024 Form 6251.” |
| Line 2 | “Enter adjustments and preferences treated as exclusion items” |
| Line 3 | “Minimum tax credit net operating loss deduction” |
| Line 8 | “Multiply line 7 by 25% (0.25)” |
| Line 12 | “Minimum tax foreign tax credit on exclusion items” |
| Line 13 | “Tentative minimum tax on exclusion items. Subtract line 12 from line 11” |
| Line 15 | “Net minimum tax on exclusion items. Subtract line 14 from line 13.” |
| Line 19 | “2024 credit carryforward. Enter the amount from your 2024 Form 8801, line 26” |
| Line 21 | “Combine lines 18 through 20.” |
| Line 24 | “Subtract line 23 from line 22.” |
| Line 25 | “Minimum tax credit. Enter the smaller of line 21 or line 24.” |
| Line 26 | “Credit carryforward to 2026. Subtract line 25 from line 21.” |
Line 25 is the result that moves to the return: “Also enter this amount on your 2025 Schedule 3 (Form 1040), line 6b; or Form 1041, Schedule G, line 2c.” On line 26 the form adds “Keep a record of this amount because you may use it in future years.”
Amounts printed in Part I
Part I has fixed 2024 amounts that depend on filing status. Each is printed on the form and labelled for 2024.
| Item | As printed on the form |
|---|---|
| Line 5, joint or surviving spouse | “Enter: $133,300 if married filing jointly or qualifying surviving spouse for 2024” |
| Line 5, single or head of household | “$85,700 if single or head of household for 2024” |
| Line 5, married filing separately | “$66,650 if married filing separately for 2024” |
| Line 5, estates and trusts | “Estates and trusts, enter $29,900” |
| Line 6, joint or surviving spouse | “Enter: $1,218,700 if married filing jointly or qualifying surviving spouse for 2024” |
| Line 6, estates and trusts | “Estates and trusts, enter $99,700” |
| Line 11 rate step | “multiply line 10 by 26% (0.26)” |
| Line 11 upper rate | “multiply line 10 by 28% (0.28) and subtract $4,652” |
Line 4 also carries a rule for married filing separately in 2024. The instructions say “If your filing status was married filing separately for 2024 and line 4 is more than $875,950”, “you must include an additional amount on line 4.”
Estates, trusts and line 22
Estates and trusts follow a separate route on line 1: “If you are filing on behalf of an estate or trust, skip lines 1 through 3 of Form 8801.” “don’t attach that worksheet Schedule I to your tax return.”
Line 22 refers back to the 2025 return. The instructions say “Follow the instructions below and refer to your 2025 income tax return to figure the amount to enter on line 22.”
Official IRS pages
The IRS maintains the About Form 8801 page for the current form and instructions, the About Form 6251 page for the alternative minimum tax computation that Part I reads back, and the About Form 1040 page for the return that carries the credit.
Which revision applies
The edition read for this page is Form 8801 for 2025, with the 2025 Instructions for Form 8801 dated Dec 22, 2025, which is the revision irs.gov served when it was read on 2026-10-19. Check the year printed on the form you are attaching, because a later revision can change the line layout and the dollar amounts on lines 4 through 11.
Common mistakes
- Filing when there is nothing to claim. The instructions say “File Form 8801 only if line 21 is more than zero.”
- Skipping the carryforward record. The form says “Keep a record of this amount because you may use it in future years.”
- Attaching the estate or trust worksheet. The instructions say “don’t attach that worksheet Schedule I to your tax return.”
- Using the wrong year for the inputs. Line 1 reads “Combine lines 1 and 2e of your 2024 Form 6251.”
Related: AMT credit recovery, Form 6251, and ISO AMT crossover calculator.
Sources
- Form 8801 (2025), Credit for Prior Year Minimum Tax, Individuals, Estates, and Trusts: https://www.irs.gov/pub/irs-pdf/f8801.pdf
- 2025 Instructions for Form 8801: https://www.irs.gov/pub/irs-pdf/i8801.pdf
Read from the agency documents linked above on October 19, 2026. General information, not tax advice. Your own facts decide the outcome, and a preparer, the account provider or the IRS is the right place to confirm anything consequential.