Mary determined her AMTI to be $120,000 for 2018. If her regular income tax liability is $27,000, what is the amount of the alternative minimum tax for 2018?

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The AMT is calculated by applying the AMT rates to the AMT income, which is the AMTI minus the AMT exemption amount. The AMT exemption amount for 2018 is $70,300 for single filers. Mary's AMT income is $120,000 - $70,300 = $49,700. The AMT rates for 2018 are 26% on the first $194,500 of AMT income and 28% on AMT income over $194,500. Mary's AMT liability is $12,922 (26% x $49,700) + $1,278 (28% x $4,500) = $14,200. Since Mary's regular income tax liability is $27,000, she will not owe any AMT.

Mary Determined Her AMTI to Be $120,000 for 2018