Meg, who is single and age 36, provides you with the following information from her financial records. Calculate her AMT exemption for 2012.

Question

Meg, who is single and age 36, provides you with the following information from her financial records.  Calculate her AMT exemption for 2012.

Quizplus · Accepted Answer

Meg's AMT exemption for 2012 is $50,600, which is reduced by 25% of the amount by which her AMT income exceeds $112,500. Meg's AMT income is calculated as follows:
Regular taxable income: $60,000
Add back: State and local income taxes: $6,000
Add back: Property taxes: $4,500
Add back: Personal exemptions: $11,388
Add back: Standard deduction: $5,950
Add back: Miscellaneous itemized deductions: $2,500
Total adjustments: $30,338
AMT income: $90,338
Since $90,338 exceeds $112,500, Meg's AMT exemption is reduced by 25% of the excess, which is $19,209.50. Therefore, Meg's AMT exemption for 2012 is $50,600 - $19,209.50 = $31,390.50. However, since Meg is not married and has no dependents, her exemption is further reduced to $14,075.

Meg, Who Is Single and Age 36, Provides You with the Following