Julia's tentative AMT is $94,000. Her regular income tax liability is $72,000. Julia's AMT is $22,000.

Question

Quizplus · Accepted Answer

This is true based on the information given. The AMT (Alternative Minimum Tax) liability is calculated separately from the regular income tax liability and is designed to ensure that high-income earners with many deductions and credits still pay a minimum level of tax. In this case, Julia's tentative AMT of $94,000 is higher than her regular income tax liability of $72,000, so she would owe the AMT amount of $22,000 instead.

Julia's Tentative AMT Is $94,000