Ruth Anne, a single taxpayer, reported $152,600 alternative minimum taxable income before any exemption on her 2016 Form 1040. Calculate Ruth Anne's AMT exemption.

Question

Quizplus · Accepted Answer

For tax year 2016, the AMT exemption amount for single taxpayers is $53,900, but it starts to phase out when their alternative minimum taxable income exceeds $119,700, and it's completely phased out at $335,000. Since Ruth Anne reported $152,600 in alternative minimum taxable income, her AMT exemption is not phased out, and she's entitled to the full exemption amount of $53,900. Thus, B is the correct answer.

Ruth Anne, a Single Taxpayer, Reported $152,600 Alternative Minimum Taxable