Dan and Maureen file a joint income tax return for 2019. They have two dependent children, ages 7 and 9. Together they earn wages of $830,000. They also receive taxable interest income of $8,000 and interest on City of Los Angeles bonds of $78,000. During 2019, they received a state income tax refund of $3,000 relating to their 2018 state income tax return on which they itemized deductions. Their expenses for the year consist of the following:
$$\begin{array} { l r }
\text { Home mortgage interest (on acquisition debt) } & \$ 19,000 \
\text { Interest on credit cards } & 2,000 \
\text { Real property taxes } & 8,300 \
\text { Cash charitable contributions } & 75,000 \
\text { State income taxes withheld } & 48,000
\end{array}$$ Calculate Dan and Maureen's tentative minimum tax liability assuming an AMT exemption amount of $111,700, before any phase-outs. Show your calculations.

Question

Dan and Maureen file a joint income tax return for 2019. They have two dependent children, ages 7 and 9. Together they earn wages of $830,000. They also receive taxable interest income of $8,000 and interest on City of Los Angeles bonds of $78,000. During 2019, they received a state income tax refund of $3,000 relating to their 2018 state income tax return on which they itemized deductions. Their expenses for the year consist of the following:
  $$\begin{array} { l r } 
\text { Home mortgage interest (on acquisition debt) } & \$ 19,000 \
\text { Interest on credit cards } & 2,000 \
\text { Real property taxes } & 8,300 \
\text { Cash charitable contributions } & 75,000 \
\text { State income taxes withheld } & 48,000
\end{array}$$ Calculate Dan and Maureen's tentative minimum tax liability assuming an AMT exemption amount of $111,700, before any phase-outs. Show your calculations.

Quizplus · Accepted Answer

The Answer of Dan and Maureen file a joint income tax return for 2019. They have two dependent children, ages 7 and 9. Together they earn wages of $830,000. They also receive taxable interest income of $8,000 and interest on City of Los Angeles bonds of $78,000. During 2019, they received a state income tax refund of $3,000 relating to their 2018 state income tax return on which they itemized deductions. Their expenses for the year consist of the following:
  $$\begin{array} { l r } 
\text { Home mortgage interest (on acquisition debt) } & \$ 19,000 \
\text { Interest on credit cards } & 2,000 \
\text { Real property taxes } & 8,300 \
\text { Cash charitable contributions } & 75,000 \
\text { State income taxes withheld } & 48,000
\end{array}$$ Calculate Dan and Maureen's tentative minimum tax liability assuming an AMT exemption amount of $111,700, before any phase-outs. Show your calculations.

Dan and Maureen File a Joint Income Tax Return for 2019