Jake and Christina are married and file a joint return for 2017 with taxable income of $100,000 and tax preferences and adjustments of $20,000 for AMT purposes.Their regular tax liability is $16,478.What is the amount of their total tax liability?
A)$7,248
B)$9,230
C)$16,478
D)$25,708

Question

Quizplus · Accepted Answer

C)The amount of AMTI is $120,000.Their AMT base $120,000 - $84,500 or $35,500.Their TMT is $35,500 × .26 = $9,230.Their tax liability is the greater of the TMT or regular tax,in this case,$16,478.

Jake and Christina Are Married and File a Joint Return