Which of the following statements is correct?
A) If the tentative minimum tax exceeds the regular income tax liability, the AMT is $0.
B) The exemption amount decreases as AMTI increases.
C) The AMT tax rate for an individual taxpayer can be as high as 26%.
D) Only a. and c. are correct.
E) a., b., and c. are correct.

Question

Quizplus · Accepted Answer

Choice A is not correct because if the tentative minimum tax exceeds the regular income tax liability, the taxpayer has to pay the higher AMT amount, not $0. Choice C is not correct because the maximum AMT tax rate for individual taxpayers is 28%. Choice D is also incorrect because choice A is not correct. Choice E is incorrect because only choice B is correct. The exemption amount decreases as AMTI increases because the AMT exemption amount is phased out for higher-income taxpayers.

Which of the Following Statements Is Correct