Ruth Anne,a single taxpayer,reported $529,500 alternative minimum taxable income before any exemption on her 2019 Form 1040.Calculate Ruth Anne's AMT exemption.

Question

Quizplus · Accepted Answer

The AMT exemption for a single taxpayer in 2019 is $71,700. However, the exemption is phased out for taxpayers with AMTI above certain levels. For AMTI between $510,300 and $1,020,600, the exemption is reduced by 25 cents for each dollar of AMTI in excess of $510,300. Ruth Anne's AMTI is $529,500, which is $19,200 above the threshold. Therefore, her exemption is reduced by $4,800 (25 cents x $19,200). This leaves her with an AMT exemption of $66,900 ($71,700 - $4,800).

Ruth Anne,a Single Taxpayer,reported $529,500 Alternative Minimum Taxable Income Before