In 2025 I had repay some $40k in income overpayment I received in 2024. My employer refused to issue a corrected W-2, so I paid my 2024 taxes for the amount I received that year, hoping to largely recoup the amount I had to pay my employer back via a Claim of Right on my 2025 taxes.
But my good friend Gemini now tells me that a Claim of Right, regardless of the specific method used to compute it, never applied to AMT.
My regular tax is only a couple of grand higher that my calculated AMT tax. So a reduction in my regular tax that doesn’t live the AMT would mean I’m never going to recoup most of the taxes I paid on the overpaid salary.
This seems tragically unfair. Is it true?
Posted by trondheim12