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AMT Amounts

Jake and Christina are married and file a joint return for the current year with taxable income of $100,000 and tax preferences and adjustments of $20,000 for AMT purposes. Their regular tax liability is $15,750. What is the amount of their total tax liability?

A. $2,997
B. $11,843
C. $15,750
D. $28,503

Solution Preview

Correct. The taxpayer must pay whichever is higher - regular tax or AMT. If AMT is higher, that is the amount that the taxpayer must pay. You would not ...

Solution Summary

This solution provides the correct answer with explanation to the AMT multiple choice taxation question listed.