In 2018, Brenda has calculated her regular tax liability to be $32,500 and her tentative minimum tax TMT) to be $36,300. Additionally, Brenda holds an alternative minimum tax credit of $6,200 from 2014.
What is Brenda's total 2018 Federal income tax liability?
A) $26,300.
B) $30,100.
C) $32,500.
D) $36,300.

Question

Quizplus · Accepted Answer

Brenda's TMT of $36,300 is higher than her regular tax liability of $32,500. Therefore, she must pay the higher of the two, which is $36,300. However, because she has an alternative minimum tax credit of $6,200, her total Federal income tax liability for 2018 is $36,300 - $6,200 = $30,100.

In 2018, Brenda Has Calculated Her Regular Tax Liability to Be