An exemption amount is allowed for the AMT calculation
I.as a deduction from tentative AMTI.II.to provide the average individual taxpayer with the opportunity to not be effected by the AMT provisions.
III.through legislative grace for taxpayers with moderate amounts of taxable income and without significant preferences and/or adjustments.
IV.In the amount of $109,400 for married taxpayers filing jointly.

A)Only statement I is correct.
B)Only statement IV is correct.
C)Statements II and III are correct.
D)Statements I, II, and III are correct.
E)Statements I, II, III, and IV are correct.

Question

An exemption amount is allowed for the AMT calculation
I.as a deduction from tentative AMTI.II.to provide the average individual taxpayer with the opportunity to not be effected by the AMT provisions.
III.through legislative grace for taxpayers with moderate amounts of taxable income and without significant preferences and/or adjustments.
IV.In the amount of $109,400 for married taxpayers filing jointly.
​
A)Only statement I is correct.
B)Only statement IV is correct.
C)Statements II and III are correct.
D)Statements I, II, and III are correct.
E)Statements I, II, III, and IV are correct.

Quizplus · Accepted Answer

The exemption amount for the Alternative Minimum Tax (AMT) calculation serves multiple purposes: it acts as a deduction from tentative Alternative Minimum Taxable Income (AMTI) to help ensure that average taxpayers are not affected by AMT, it is designed to exempt taxpayers with moderate income who don't have significant preferences or adjustments, and the specific amount mentioned, $109,400 for married taxpayers filing jointly, is accurate as of the last update, reflecting the exemption amount for a specific filing status.

An Exemption Amount Is Allowed for the AMT Calculation