Celia and Amos,who are married filing jointly,have one dependent and do not itemize deductions.They have taxable income of $82,000 and tax preferences of $53,000 in 2011.What is their AMT base for 2011?

Question

Quizplus · Accepted Answer

Their AMT base can be calculated by starting with their taxable income and adding back tax preferences. 
AMT base = taxable income + tax preferences 
AMT base = $82,000 + $53,000 
AMT base = $135,000 
However, since the AMT exemption amount for married filing jointly taxpayers in 2011 was $74,450, we subtract that from the AMT base to get their final AMT amount. 
AMT = AMT base - AMT exemption 
AMT = $135,000 - $74,450 
AMT = $60,550 
Therefore, their AMT base is $85,175 ($135,000 - $49,825, which is the difference between the AMT exemption in 2011 and their taxable income).

Celia and Amos,who Are Married Filing Jointly,have One Dependent and Do