M1MTC: Alternative Minimum Tax Credit (2025)
Minnesota · Minnesota DOR · Used for tax years 2025
Minnesota Schedule M1MTC calculates your alternative minimum tax credit available for 2025, the amount you can use in 2025, and any unused credit you can carry forward. The credit is nonrefundable.
Who files this form
Schedule M1MTC determines your Minnesota alternative minimum tax (AMT) credit and tracks any unused credit you can carry forward.
You may qualify for a nonrefundable credit for 2025 if you paid Minnesota AMT in prior years but are not required to pay it in 2025. You may be eligible if either applies:
- Line 27 is more than line 28 on your 2024 Schedule M1MT, and the liability is at least partly due to timing items.
- You have an amount on line 29 of your 2024 Schedule M1MTC.
If you paid AMT in one or more years from 1989 through 2024 but did not complete Schedule M1MTC, complete it to determine any carryover. You must file the schedule to track that amount.
If you have a carryforward, include Schedule M1MTC with your 2025 Form M1 even if you cannot use any credit for 2025. If you did not pay Minnesota AMT in prior years, you are not eligible for this credit.
What you'll need
Have these returns and schedules available, as applicable:
- 2024 Form M1: line 1 supplies the amount for Schedule M1MTC, line 1.
- 2024 Schedule M1MT: supplies prior-year AMT amounts, deductions, and subtractions.
- 2024 Schedule M1M: supplies certain interest, dividends, and expenses.
- 2024 federal Form 6251: used for the Part 1 skip rule and certain private activity bond interest.
- 2024 Schedule M1MTC: line 29 supplies your prior carryforward.
- 2024 and 2025 Schedules M1NR: needed for the applicable calculations if you are a nonresident or part-year resident.
- 2025 Schedule M1MT: complete this before completing Schedule M1MTC.
- 2025 Schedule M1C: used to adjust the tax amounts and report the credit.
Include Schedule M1MTC, Schedule M1MT, and Schedule M1C when you file your 2025 Form M1.
How to file
File Schedule M1MTC with your 2025 Form M1. You must also include Schedule M1MT and Schedule M1C.
Complete 2025 Schedule M1MT first. You cannot complete Parts 2 and 3 of Schedule M1MTC until you determine your 2025 tax liability.
Enter the credit from Schedule M1MTC, line 28, on Schedule M1C, line 18. If you have an unused credit carryforward, include Schedule M1MTC even if you cannot use any credit for 2025.
The supplied text does not give a mailing address or e-filing directions.
Common mistakes
- Completing the schedules out of order: Read the instructions and complete 2025 Schedule M1MT before Schedule M1MTC.
- Not rounding amounts: Round to the nearest whole dollar.
- Including a net operating loss subtraction on line 13: Do not include any net operating loss subtraction from line 18 of your 2024 Schedule M1MT.
- Claiming the credit while subject to 2025 Minnesota AMT: Skip Part 2 if you are subject to Minnesota AMT for 2025. You may not take the credit for 2025.
- Leaving out required schedules: Include Schedule M1MTC, Schedule M1MT, and Schedule M1C with Form M1. File Schedule M1MTC to report a carryforward even if you cannot use the credit for 2025.
- Discarding your records too soon: Save copies of Schedule M1MTC until you have claimed the entire credit.
Questions people ask
Is the Minnesota alternative minimum tax credit refundable?
No. The instructions describe it as a nonrefundable credit.
Does all Minnesota AMT generate a credit?
No. Only AMT attributable to timing adjustments and preferences generates the credit. Examples include accelerated depreciation, intangible drilling costs preferences, and the exercise of incentive stock options. AMT attributable to exclusion items does not generate the credit.
Can I skip any of Part 1?
If line 2h, lines 2k through 2t, and line 3 of your 2024 federal Form 6251 are blank, skip lines 1 through 22 of Schedule M1MTC and start with line 23.
How much credit can I use for 2025?
If you are eligible to use the credit, line 28 is the smaller of line 24, your available credit, or line 27. Also enter that amount on Schedule M1C, line 18. If you are subject to Minnesota AMT for 2025, you may not take the credit for 2025.
What happens to credit I cannot use?
You may carry forward the unused portion. Generally, line 29 is line 24 minus line 28. If you were subject to Minnesota AMT for 2025 and skipped Part 2, enter the amount from line 24 on line 29. File Schedule M1MTC with your 2025 Form M1 to track the carryforward.