Ms.Dorley's regular tax liability on her Form 1040 is $45,890.Which of the following statements is true?

Question

Quizplus · Accepted Answer

Option A is incorrect because the total tax liability cannot be higher than the tentative minimum tax. Option C is incorrect because if the AMT is higher than the regular tax liability, then the taxpayer will have to pay the AMT, not the regular tax liability. Option D is incorrect because the tentative minimum tax cannot be lower than the regular tax liability. Therefore, option B is the correct answer because the total tax liability is the sum of the regular tax liability and the AMT, which would be $45,890 + $6,380= $52,270.

MsDorley's Regular Tax Liability on Her Form 1040 Is $45,890