Mr. and Mrs. Stern reported $1,164,540 alternative minimum taxable income before any exemption on their 2020 Form 1040. Calculate their AMT exemption.

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For the 2020 tax year, the AMT exemption amount for a married couple filing jointly was $113,400. However, this exemption begins to phase out for taxpayers with alternative minimum taxable income (AMTI) over $1,036,800. Since Mr. and Mrs. Stern's AMTI is $1,164,540, their exemption would be subject to a phase-out. The exact exemption amount after phase-out would depend on the amount by which their AMTI exceeds the phase-out threshold. Given the options provided, none directly reflect the calculation needed to determine the exact exemption amount after considering the phase-out, hence the correct choice is that none of these choices are correct.

Mr and Mrs