Ruth Anne, a single taxpayer, reported $152,600 alternative minimum taxable income before any exemption on her 2011 Form 1040. Calculate Ruth Anne's AMT exemption.

Question

Quizplus · Accepted Answer

To find Ruth Anne's AMT exemption, we need to refer to the AMT exemption phase-out table in the Form 6251 instructions. For 2011, the exemption amount is $74,450 for single taxpayers with alternative minimum taxable income (AMTI) below $112,500, and the exemption is reduced by 25% of AMTI in excess of $112,500.

So, we need to calculate the reduction in Ruth Anne's exemption:

$152,600 - $112,500 = $40,100
$40,100 x 0.25 = $10,025
$74,450 - $10,025 = $64,425

Therefore, Ruth Anne's AMT exemption is $64,425.

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