Robin, who is a head of household and age 42, provides you with the following information from his financial records for 2017. Robert itemizes deductions.
Calculate Robin's AMT for 2017.
A)$6,633.
B)$13,332.
C)$48,828.
D)$54,428.

Question

Robin, who is a head of household and age 42, provides you with the following information from his financial records for 2017. Robert itemizes deductions. ​
 Calculate Robin's AMT for 2017.
A)$6,633. 
B)$13,332. 
C)$48,828. 
D)$54,428.

Quizplus · Accepted Answer

To calculate Robin's AMT, we need to make several adjustments to his regular taxable income (line 43 of Form 1040). We start with Robin's regular taxable income of $78,000 and add back various deductions and adjustments, including:

- Personal exemptions: $16,200
- State and local taxes (limited to $10,000): $10,000
- Miscellaneous itemized deductions (limited to 2% of AGI): $2,528
- Standard deduction (since it is added back in AMT): $13,000

We also make adjustments for the following AMT preferences:

- Depreciation: $6,480
- Tax-exempt interest: $2,000

After making these adjustments, Robin's alternative minimum taxable income (AMTI) is $121,892. We then calculate his AMT by subtracting his AMT exemption amount ($84,500) and multiplying the remaining AMTI by 28%. The resulting AMT liability is $13,332. Therefore, the best answer is B.

Robin, Who Is a Head of Household and Age 42