U.S. · Form 8801 line 12
Form 8801 line 12 minimum tax foreign tax credit on exclusion items.
Which amount to enter, and the steps to refigure it from your 2024 Form 1116 when the shortcut does not apply.
Line 12 is your minimum tax foreign tax credit on exclusion items (MTFTCE). If you elected for 2024 to claim the foreign tax credit without Form 1116, enter the credit from your 2024 Schedule 3 (Form 1040), line 1. Otherwise refigure your 2024 AMT foreign tax credit using only exclusion items on special Forms 1116 and enter line 35 of the first one.
Look up a situation
Result
Which amount goes on line 12
| Situation | What the 2025 instructions say |
|---|---|
| Elected the credit without Form 1116 | MTFTCE is the same as the foreign tax credit on your 2024 Schedule 3 (Form 1040), line 1. Enter that on line 12. |
| Used Form 1116 for 2024 | Refigure the 2024 AMT foreign tax credit using only exclusion items, as the steps below describe, and enter the result on line 12. |
| Separate income categories | Complete a separate 2024 Form 1116 for MTFTCE for each category, writing MTFTCE and the category in the top margin. |
| High-taxed income | Use the applicable AMT rate instead of the regular tax rate to decide whether income is high-taxed. |
| Foreign qualified dividends at 15% | When adjustments are required, multiply by 0.5357 instead of 0.4054 before line 1a of the MTFTCE Form 1116. |
| Foreign qualified dividends at 20% | When adjustments are required, multiply by 0.7143 instead of 0.5405. |
| Foreign qualified dividends at 0% | Adjust by not including them on line 1a of the MTFTCE Form 1116. |
| Simplified limitation election | If you used it for 2024 AMTFTC, skip Part I and use lines 9 through 14, with line 17 matching the 2024 AMT Form 1116. |
| Carryover | If line 14 of the MTFTCE Form 1116 exceeds line 21, keep a record: it is carried forward to figure next year MTFTCE. |
The steps in order
Step 1 separates foreign source income into categories. Step 2 completes Part I of each MTFTCE Form 1116 with only taxable income and exclusion items from foreign sources, with possible adjustments for foreign qualified dividends and capital gains. Step 3 completes lines 9 to 17, using the same line 9 amount as your regular 2024 return and any MTFTCE carryover on line 10. Step 4 enters Form 8801 line 4 on line 18, with an MTFTCE Worksheet for Line 18 in most cases where you completed Part III and line 53 is smaller than line 54 and line 32 is above zero. Step 5 enters Form 8801 line 11 on line 20 and completes lines 19 to 24. Step 6 completes Part IV of the first MTFTCE Form 1116 only and carries its line 35 to Form 8801 line 12. Keep all Forms 1116 used but do not attach them.
Where line 12 goes
Line 13 is line 11 minus line 12, the tentative minimum tax on exclusion items. Line 15, the net minimum tax on exclusion items, is line 13 minus line 14 (your 2024 Form 6251 line 10), not below zero. A larger line 12 lowers line 13 and so line 15, which flows to line 17; a smaller line 17 leaves a larger line 18.
What this page does not do
It does not complete a Form 1116 or decide your income categories. It is a guide to which route the instructions send you down. For related AMT reading see the AMT exemption calculator.
Sources
- Instructions for Form 8801 (2025): Line 12 steps, adjustment factors, shortcut election and carryover note. Read November 2, 2026.
- Form 8801 (2025): The exact wording of lines 11 to 15. Read November 2, 2026.
These are the tax year 2025 edition instructions and forms (published for returns filed in 2026). The IRS revises them each year, so thresholds, line numbers and limits can change; check the current edition before relying on a figure.
Frequently asked questions
What is Form 8801 line 12?
The minimum tax foreign tax credit on exclusion items (MTFTCE), subtracted from the line 11 tentative minimum tax to get line 13.
Is there a shortcut for line 12?
Yes. If you elected to claim the foreign tax credit on your 2024 return without filing Form 1116, enter the credit from your 2024 Schedule 3 (Form 1040), line 1.
What if I filed Form 1116 for 2024?
Refigure your 2024 AMT foreign tax credit using only exclusion items on a separate MTFTCE Form 1116 for each income category, then enter line 35 of the first one on Form 8801 line 12.
Do I attach the MTFTCE Forms 1116?
No. Keep them with your records but do not attach them to your return.
Which tax year do the Form 1116 figures come from?
The 2024 tax year, since Form 8801 for 2025 refigures prior year AMT.
Not tax or legal advice
This page summarizes IRS instructions and is not tax, legal or financial advice. A CPA, enrolled agent or the IRS can confirm what applies to your situation. Everything runs in your browser; nothing you enter is sent anywhere.