Ontario AMT and ITC

Program(s) affected: T1 Document created: April 25, 2005 Tax year(s): 2004 Document last modified: Version(s): 8.22 Problem status: Pending

Why is DT Max calculating Ontario AMT even though it should not apply based on the AMT carryforward and investment tax credit used in the year?

This only occurs in cases where the AMT carryforward from prior years that is used in the year brings the tax up to the minimum amount; thus, no investment tax credit (ITC) can be claimed in the current year. DT Max erroneously carries to line 75 of the federal AMT schedule (T691) the full amount of ITC, which triggers the Ontario AMT.

As a workaround, use the keyword Override with the option Federal schedule T691 line 75 to enter "0" on line 75.