In 2014, Maia (who files as a head of household) reported regular taxable income of $115,000. She itemized her deductions, deducting $8,000 in charitable contributions and $3,000 in state income taxes. She claimed exemptions for herself and her son, Hermes, ($3,900 each). What is Maia's alternative minimum taxable income?

Question

Quizplus · Accepted Answer

To calculate the alternative minimum taxable income (AMTI), start with Maia's regular taxable income of $115,000. Add back the state income taxes of $3,000, as they are not deductible for AMT purposes. The exemptions for herself and her son ($3,900 each, totaling $7,800) are also added back. Therefore, AMTI = $115,000 + $3,000 + $7,800 = $125,800.

In 2014, Maia (Who Files as a Head of Household)