Form 8801 Credit For Prior Year Minimum Tax -- Individuals, Estate

1

Tax Year 2007 Work Request Notification
Form 8801, Credit for Prior Year Minimum Tax—Individuals, Estates, and Trusts
To:

Symbols:

1. Scanned by:

SE:W:CAR:MP:T: I : S

2. Section Chief:

Rick L. Baker

SE:W:CAR:MP:T: I : S

3. Reviewer:

Karl D. Blake

SE:W:CAR:MP:T: I :R

Marilyn Ward

SE:W:CAR:MP:T: I :R

4. Review Chief:
5. Branch Chief:

SE:W:CAR:MP:T: I

6. Senior Technical Advisor: Bob Erickson

SE:W:CAR:MP:T

Agreed:

Date:

✔
✔

9/24/2007

Marilyn Ward

Digitally signed by recipients, user mailboxes, raeric00
DN: o=internal revenue service, ou=washington dc,
cn=recipients, cn=user mailboxes, cn=raeric00
Date: 2007.09.25 08:53:52 -04'00'

✔

7. *TPCC Circulations Email sent to Distribution List by: Diane K. Creed
8. Initiator (Tax Law Specialist): Michael C. Young

SE:W:CAR:MP:T: I : S

9/24/2007
I have reviewed this document
2007.09.25 08:48:14 -04'00'

9/25/2007

Completed:

Attached is a marked up draft that can be used to develop any necessary Work Requests for
the 2008 processing year. The major changes are as follows:

This is the fifth WRN for the 2007 Form 8801. Changes since the fourth WRN are:
We corrected the calculation of the new refundable credit for prior year minimum tax. We replaced
lines 49 through 53 with lines 49 through 54. All subsequent lines and line references have been
renumbered. IRC 53(e)(3).

✔

This Notification is for changes due to:
Legislation or Chief Counsel guidance: P.L.109-432, Sec. 402 - adding code section 53(e).
A Program change initiated by:

✔

We do not anticipate the need for any further changes that would require a Work Request.
We may need to make further changes that would require a Work Request.

If you have any questions, please contact the TLS shown below, or the reviewer on line 3 (above).
From:

Michael C. Young
SE:W:CAR:MP:T: I : S

Signed:

8MZHB

Digitally signed by 8MZHB
DN: cn=8MZHB
Reason: I am the author of this document
Date: 2007.09.24 08:48:42 -04'00'

Date:
09/24/2007

Email:
[email protected]
Room:
6423

Phone Number:
(202) 622-9791
Fax Number:
(202) 622-5015
Rev. 09/28/2006

Form

8801

Department of the Treasury
Internal Revenue Service (99)

Name(s) shown on return

Part I

OMB No. 1545-1073

Credit for Prior Year Minimum Tax—
Individuals, Estates, and Trusts

2007

f
o
s
a
7
t
0
f
0
a
2
r
/
D /05
9
0




See separate instructions.
Attach to Form 1040, 1040NR, or 1041.

Attachment
Sequence No.

Net Minimum Tax on Exclusion Items

1
2
3

1
2
3

Combine lines 1, 6, and 10 of your 2006 Form 6251. Estates and trusts, see instructions
Enter adjustments and preferences treated as exclusion items (see instructions)
Minimum tax credit net operating loss deduction (see instructions)

4

Combine lines 1, 2, and 3. If more than zero or you filed Form 2555 or 2555-EZ for 2006, go to
line 5. If zero or less and you did not file Form 2555 or 2555-EZ for 2006, enter -0- here and on
line 15 and go to Part II. If more than $200,100 and you were married filing separately for 2006,
see instructions
Enter: $62,550 if married filing jointly or qualifying widow(er) for 2006; $42,500 if single or head of
household for 2006; or $31,275 if married filing separately for 2006. Estates and trusts, enter $22,500
Enter: $150,000 if married filing jointly or qualifying widow(er) for 2006; $112,500 if single or head of
household for 2006; or $75,000 if married filing separately for 2006. Estates and trusts, enter $75,000
Subtract line 6 from line 4. If zero or less, enter -0- here and on line 8 and go to line 9
Multiply line 7 by 25% (.25)
Subtract line 8 from line 5. If zero or less, enter -0-. If this form is for a child under age 18, see instructions

5
6
7
8
9
10

11

12
13
14
15

Subtract line 9 from line 4. If more than zero or you filed Form 2555 or 2555-EZ for 2006, go to
line 11. If zero or less and you did not file Form 2555 or 2555-EZ for 2006, enter -0- here and
on line 15 and go to Part II. Form 1040NR filers, see instructions
● If for 2006 you filed Form 2555 or 2555-EZ, see page 2 of the instructions for the amount to
enter.
● If for 2006 you reported capital gain distributions directly on Form 1040, line 13; you reported
qualified dividends on Form 1040, line 9b (Form 1041, line 2b(2)); or you had a gain on both lines
15 and 16 of Schedule D (Form 1040) (lines 14a and 15, column (2), of Schedule D (Form 1041)),
complete Part III of Form 8801 and enter the amount from line 48 here.
● All others: If line 10 is $175,000 or less ($87,500 or less if married filing separately for
2006), multiply line 10 by 26% (.26). Otherwise, multiply line 10 by 28% (.28) and subtract
$3,500 ($1,750 if married filing separately for 2006) from the result.
Minimum tax foreign tax credit on exclusion items (see instructions)
Tentative minimum tax on exclusion items. Subtract line 12 from line 11
Enter the amount from your 2006 Form 6251, line 34, or 2006 Form 1041, Schedule I, line 55
Net minimum tax on exclusion items. Subtract line 14 from line 13. If zero or less, enter -0-



Part II
16
17
18
19
20
21
22
23
24
25
26

27

28

74

Identifying number

(

)

4

5
6
7
8
9

10

11

12
13
14
15

Current Year Nonrefundable and Refundable Credits and Carryforward to 2008

Enter the amount from your 2006 Form 6251, line 35, or 2006 Form 1041, Schedule I, line 56
Enter the amount from line 15 above
Subtract line 17 from line 16. If less than zero, enter as a negative amount
2006 minimum tax credit carryforward. Enter the amount from your 2006 Form 8801, line 26
Enter your 2006 unallowed qualified electric vehicle credit (see instructions)
Combine lines 18, 19, and 20. If zero or less, stop here and see instructions
Enter your 2007 regular income tax liability minus allowable credits (see instructions)
Enter the amount from your 2007 Form 6251, line 33, or 2007 Form 1041, Schedule I, line 54
Subtract line 23 from line 22. If zero or less, enter -0Current year nonrefundable credit. Enter the smaller of line 21 or line 24. Also enter this amount
on your 2007 Form 1040, line 55; Form 1040NR, line 50; or Form 1041, Schedule G, line 2d
● Estates and trusts: Leave lines 26 and 27 blank and go to line 28.
● Individuals: Did you have a minimum tax credit carryforward to 2005 (on your 2004 Form 8801,
line 26)?
No. Leave lines 26 and 27 blank and go to line 28.
Yes. Complete Part IV of Form 8801 to figure the amount to enter
Is line 26 more than line 25?
No. Leave line 27 blank and go to line 28.
Yes. Subtract line 25 from line 26. This is your current year refundable credit. Enter the
result here and on your 2007 Form 1040, line 71, or Form 1040NR, line 69
Credit carryforward to 2008. Subtract the larger of line 25 or line 26 from line 21. Keep a record
of this amount because you may use it in future years

For Paperwork Reduction Act Notice, see page 4 of the instructions.

Cat. No. 10002S

16
17
18
19
20
21
22
23
24
25

26

27
28
Form

8801

(2007)

Form 8801 (2007)

Part III

Page

2

Tax Computation Using Maximum Capital Gains Rates

f
o
s
a
7
t
0
f
0
a
2
r
/
D /05
9
0

Caution. If you did not complete the 2006 Qualified Dividends and Capital Gain Tax Worksheet,
the 2006 Schedule D Tax Worksheet, or Part V of the 2006 Schedule D (Form 1041), see the
instructions before completing this part.
29
30

Enter the amount from Form 8801, line 10
Enter the amount from line 6 of your 2006 Qualified Dividends and
Capital Gain Tax Worksheet, the amount from line 13 of your 2006
Schedule D Tax Worksheet, or the amount from line 22 of the 2006
Schedule D (Form 1041), whichever applies*

29

30

If you figured your 2006 tax using the 2006 Qualified Dividends and
Capital Gain Tax Worksheet, skip line 31 and enter the amount
from line 30 on line 32. Otherwise, go to line 31.
31
32
33
34
35

36

37

38
39
40
41
42
43

Enter the amount from line 19 of your 2006 Schedule D (Form 1040),
or line 14b, column (2), of the 2006 Schedule D (Form 1041)
Add lines 30 and 31, and enter the smaller of that result or the amount
from line 10 of your 2006 Schedule D Tax Worksheet
Enter the smaller of line 29 or line 32
Subtract line 33 from line 29

31
32

33
34

If line 34 is $175,000 or less ($87,500 or less if married filing separately for 2006), multiply line
34 by 26% (.26). Otherwise, multiply line 34 by 28% (.28) and subtract $3,500 ($1,750 if married

filing separately for 2006) from the result
Enter:
● $61,300 if married filing jointly or qualifying widow(er) for 2006,
● $30,650 if single or married filing separately for 2006,
● $41,050 if head of household for 2006, or
36
● $2,050 for an estate or trust
Enter the amount from line 7 of your 2006 Qualified Dividends and Capital
Gain Tax Worksheet, the amount from line 14 of your 2006 Schedule D Tax
Worksheet, or the amount from line 23 of the 2006 Schedule D (Form 1041),
whichever applies. If you did not complete either worksheet or Part V of
the 2006 Schedule D (Form 1041), enter -0Subtract line 37 from line 36. If zero or less, enter -0Enter the smaller of line 29 or line 30
Enter the smaller of line 38 or line 39
Multiply line 40 by 5% (.05)
Subtract line 40 from line 39
Multiply line 42 by 15% (.15)

35

37
38
39
40


41



43

42

If line 31 is zero or blank, skip lines 44 and 45 and go to line 46. Otherwise, go to line 44.
44
45
46
47

48

44
Subtract line 39 from line 33

Multiply line 44 by 25% (.25)
Add lines 35, 41, 43, and 45
If line 29 is $175,000 or less ($87,500 or less if married filing separately for 2006), multiply line
29 by 26% (.26). Otherwise, multiply line 29 by 28% (.28) and subtract $3,500 ($1,750 if married
filing separately for 2006) from the result
Enter the smaller of line 46 or line 47 here and on line 11

45
46

47
48

*

The 2006 Qualified Dividends and Capital Gain Tax Worksheet is on page 38 of the 2006 Instructions for Form 1040. The 2006 Schedule D Tax Worksheet is on
page D-10 of the 2006 Instructions for Schedule D (Form 1040) (page 38 of the 2006 Instructions for Form 1041).
Form

8801

(2007)

Form 8801 (2007)

Part IV

55 / 54

Enter the amount from line 25 of your 2005 Form 8801

50

51

Enter the amount from line 25 of your 2006 Form 8801

51

52

Add lines 50 and 51

53

Subtract line 52 from line 49 (If zero or less, stop; enter -0- on line 26. Do not complete the rest
of Part IV)

53

If
●
●
●

54

55

56

55

56 /

56

57 /

57

58 /

58

59 /

Single—$156,400
Married filing jointly or qualifying widow(er)—$234,600
Married filing separately—$117,300
Head of Household—$195,500

58 / 57 / 56

57

Subtract line 56 from line 55

59 / 58

58

Is line 57 more than $122,500 ($61,250 if married filing separately)?
Yes. Stop; enter -0- on line 26. Do not complete the rest of
Part IV.
No. Divide line 57 by $2,500 ($1,250 if married filing separately).
If the result is not a whole number, increase it to the next higher
whole number (for example, increase 0.0004 to 1)

58 /

55 /

Is line 55 more than the amount shown below for your filing status?

No. Stop; enter the amount from line 54 above on line 26.
Do not complete the rest of Part IV.
Yes. Enter the amount shown above for your filing status

55 /

52

line 53 is:
Less than $5,000, enter the amount from line 53
At least $5,000, but not more than $25,000, enter $5,000
More than $25,000, multiply line 53 by 20% (.20)

Enter the amount from Form 1040, line 38, or Form 1040NR, line 36
(If you are filing Form 2555, 2555-EZ, or 4563, or you are excluding
income from sources within Puerto Rico, see instructions for the
amount to enter)

●
●
●
●

60 / 59

49

50

54 /

57 / 56

f
o
s
a
7
t
0
f
0
a
2
r
/
D /05
9
0

Enter the amount from line 26 of your 2004 Form 8801

54

3

Tentative Refundable Credit

49

54 /

56 /

Page

59

Multiply line 58 by 2% (.02) and enter the result as a decimal (rounded to at least three places)

59

61 / 55 / 60

60

Multiply line 54 by line 59

60

62 / 61 / 55

61

Subtract line 60 from line 54. Enter the result here and on line 26

61

.

60 /
61 /
62 /

Form

8801

(2007)