Robin,who is a head of household and age 42,provides you with the following information from his financial records for 2015.Robert itemizes deductions.
Regular income tax liability
$ 41,527
AMT positive adjustments
30,000
AMT preferences
20,000
Taxable income
181,000

Calculate his AMT for 2016.
A)$6,633.
B)$13,544.
C)$41,527.
D)$55,071.

Question

Robin,who is a head of household and age 42,provides you with the following information from his financial records for 2015.Robert itemizes deductions.
Regular income tax liability
$ 41,527
AMT positive adjustments
30,000
AMT preferences
20,000
Taxable income
181,000
​
Calculate his AMT for 2016.
A)$6,633.
B)$13,544.
C)$41,527.
D)$55,071.

Quizplus · Accepted Answer

To calculate AMT, we need to first calculate Alternative Minimum Taxable Income (AMTI) by adding back AMT positive adjustments and preferences to taxable income.

AMTI = taxable income + AMT positive adjustments + AMT preferences
AMTI = 181,000 + 30,000 + 20,000
AMTI = 231,000

Next, we need to calculate the exemption amount and apply the AMT rate:

Exemption amount = $53,900 for single filers like Robin
AMT rate = 26%

AMT = (AMTI - exemption amount) x AMT rate
AMT = (231,000 - 53,900) x 0.26
AMT = $13,544

Therefore, the answer is B) $13,544.

Robin,who Is a Head of Household and Age 42,provides You