An individual must pay the greater of her regular income tax or her tentative minimum tax for the year.

Question

Quizplus · Accepted Answer

This is true, as the Tentative Minimum Tax (TMT) is a safety net by the IRS to ensure that high-income earners or corporations do not escape paying their fair share of taxes by taking advantage of various tax breaks and incentives. If an individual's TMT for the year is higher than their regular income tax, they must pay the TMT.

An Individual Must Pay the Greater of Her Regular Income