In 2017, Zachary incurs no AMT adjustments, and his only AMT preference (which is also his only itemized deduction) is $42,000 of state and local and real property taxes.
If Zachary were a single taxpayer who itemized deductions and had taxable income of $95,000, his regular tax liability would be $19,582 and his AMT liability would be $22,555.

Assume instead that Zachary is a married taxpayer filing jointly in 2017. The couple's taxable income amount is changed only by the additional personal exemption. In comparison to the tax liability amounts presented above, the couple's regular and AMT tax liabilities would be:
A)Higher, Higher
B)Higher, Lower
C)Lower, Higher
D)Lower, Lower

Question

​In 2017, Zachary incurs no AMT adjustments, and his only AMT preference (which is also his only itemized deduction) is $42,000 of state and local and real property taxes. ​
If Zachary were a single taxpayer who itemized deductions and had taxable income of $95,000, his regular tax liability would be $19,582 and his AMT liability would be $22,555.
​
Assume instead that Zachary is a married taxpayer filing jointly in 2017. The couple's taxable income amount is changed only by the additional personal exemption. In comparison to the tax liability amounts presented above, the couple's regular and AMT tax liabilities would be:
A)​Higher, Higher
B)​Higher, Lower
C)​Lower, Higher
D)​Lower, Lower

Quizplus · Accepted Answer

When filing jointly, the couple benefits from a higher standard deduction and additional personal exemptions, which generally reduce taxable income and thus lower both regular and AMT tax liabilities compared to a single filer.

​In 2017, Zachary Incurs No AMT Adjustments, and His Only

In 2017, Zachary Incurs No AMT Adjustments, and His Only