Drake and Davina are married and file a joint return for 2018 with taxable income of $100,000 and tax preferences and adjustments of $65,000 for AMT purposes. Their regular tax liability is $13,879. What is the amount of their total tax liability?

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Quizplus · Accepted Answer

The AMT is calculated as follows:AMT = (Taxable income + Tax preferences and adjustments) x AMT rate - AMT exemptionAMT = ($100,000 + $65,000) x 0.28 - $75,000AMT = $165,000 x 0.28 - $75,000AMT = $46,200 - $75,000AMT = -$28,800Since the AMT is negative, the taxpayers' total tax liability is their regular tax liability of $13,879.

Drake and Davina Are Married and File a Joint Return