Robin, who is a head of household and age 42, provides you with the following information from his financial records for 2012. Calculate his AMT for 2012.
A)$14,533.
B)$17,825.
C)$42,986.
D)$62,300.
E)None of the above.

Question

Robin, who is a head of household and age 42, provides you with the following information from his financial records for 2012.  Calculate his AMT for 2012.
A)$14,533. 
B)$17,825. 
C)$42,986. 
D)$62,300. 
E)None of the above.

Quizplus · Accepted Answer

To calculate Robin's AMT for 2012, we need to follow several steps as follows:

1. Calculate Robin's regular taxable income, which is $86,000.

2. Add back certain deductions that are allowed for regular tax purposes but not allowed for AMT purposes, such as personal exemptions and state and local taxes, which total $41,160.

3. Add or subtract certain items that are treated differently for AMT purposes, such as incentive stock options and tax-exempt interest, which total -$2,533.

4. Apply the AMT tax rate of 26% to arrive at the tentative minimum tax of $14,533.

Therefore, the correct answer is A) $14,533.

Robin, Who Is a Head of Household and Age 42