In 2017, Brenda has calculated her regular tax liability to be $32,500 and her tentative minimum tax (TMT) to be $36,300. Additionally, Brenda has an adoption expense credit (personal, nonrefundable credit) of $6,200.
What is Brenda's total 2017 Federal income tax liability?
A)$26,300.
B)$30,100.
C)$32,500.
D)$36,300.

Question

​In 2017, Brenda has calculated her regular tax liability to be $32,500 and her tentative minimum tax (TMT) to be $36,300. Additionally, Brenda has an adoption expense credit (personal, nonrefundable credit) of $6,200. ​
​What is Brenda's total 2017 Federal income tax liability?
A)​$26,300.
B)​$30,100.
C)​$32,500.
D)​$36,300.

Quizplus · Accepted Answer

Brenda's regular tax liability is $32,500, but her tentative minimum tax (TMT) is higher at $36,300. This means that Brenda will have to pay the higher TMT. However, Brenda is also eligible for a personal, nonrefundable adoption expense credit of $6,200. This credit reduces Brenda's total tax liability. Therefore, Brenda's total 2017 Federal income tax liability is:
TMT ($36,300) - Adoption Expense Credit ($6,200) = $30,100. Thus, the best answer is B.

​In 2017, Brenda Has Calculated Her Regular Tax Liability to Be

In 2017, Brenda Has Calculated Her Regular Tax Liability to Be