Harmony reports a regular tax liability of $16,500 and tentative minimum tax of $18,650. Given just this information, what is her alternative minimum tax liability for the year?

Question

Quizplus · Accepted Answer

To calculate alternative minimum tax liability, we need to compare regular tax liability and tentative minimum tax. The alternative minimum tax liability will be the excess of tentative minimum tax over regular tax liability. In this case, the excess is $2,150 (tentative minimum tax of $18,650 - regular tax liability of $16,500), so the answer is B.

Harmony Reports a Regular Tax Liability of $16,500 and Tentative