Jonathan is married, files a joint return, and has one child. During 2015, Jonathan has $85,000 of taxable income. He has $20,000 of positive AMT adjustments and $28,000 of tax preferences. Since Jonathan rents his home (pays no mortgage interest) and lives in Florida (has no state income tax), he does not itemize his deductions but takes the standard deduction. Calculate Jonathan's AMTI (before exclusion amount).
A) $137,600.
B) $145,000.
C) $145,600.
D)$157,600.

Question

Quizplus · Accepted Answer

Jonathan's AMTI is calculated by adding his taxable income, AMT adjustments, and tax preferences: $85,000 + $20,000 + $28,000 = $133,000. Since he takes the standard deduction, we add back the standard deduction amount for 2015, which is $12,600 for married filing jointly, resulting in $145,600. However, the correct calculation should include the standard deduction adjustment, leading to $157,600.

Jonathan Is Married, Files a Joint Return, and Has One