Ruth Anne, a single taxpayer, reported $537,600 alternative minimum taxable income before any exemption on her 2020 Form 1040. Calculate Ruth Anne's AMT exemption.

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The AMT exemption for single taxpayers with alternative minimum taxable income (AMTI) above $518,400 for tax year 2020 is phased out by 25 cents for every dollar above the threshold. Since Ruth Anne's AMTI is $537,600, which is $19,200 above the threshold, her exemption would be reduced by $4,800 (25% of $19,200). Therefore, her AMT exemption would be $68,100 ($72,900 - $4,800).

Ruth Anne, a Single Taxpayer, Reported $537,600 Alternative Minimum Taxable