Persephone has a regular tax liability of $14,175 and a tentative minimum tax of $11,670. Given just this information, what is her alternative minimum tax liability for the year?

Question

Quizplus · Accepted Answer

The alternative minimum tax (AMT) is calculated as the difference between the tentative minimum tax and the regular tax liability, but only if the tentative minimum tax is higher. Since Persephone's regular tax liability ($14,175) is higher than her tentative minimum tax ($11,670), she does not owe any AMT, making the correct answer $0.

Persephone Has a Regular Tax Liability of $14,175 and a Tentative