Persephone has a regular tax liability of $12,475 and a tentative minimum tax of $11,500. Given just this information, what is her alternative minimum tax liability for the year?

Question

Quizplus · Accepted Answer

The alternative minimum tax (AMT) is calculated as the difference between the tentative minimum tax and the regular tax liability, but only when the tentative minimum tax is greater than the regular tax liability. Since Persephone's regular tax liability ($12,475) is higher than her tentative minimum tax ($11,500), she does not owe any AMT, making the correct answer $0.

Persephone Has a Regular Tax Liability of $12,475 and a Tentative