# COMP - I:14-89 Annie a single taxpayer has taxable income...

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I:14-89. Annie, a single taxpayer, has taxable income of \$100,000, a regular tax liability of \$26,560, a positive AMT adjustment due to limitations on itemized deductions of \$20,000, and tax preferences of \$25,000 in 2007. What is Annie s AMT for 2007? Solution: Taxable income Plus: Tax preferences Plus: Adjustments related to itemized deductions Plus: Personal exemption Alternative minimum taxable income Minus: Exemption* Alternative minimum tax base Tentative Minimum Tax: \$114,875 x .26 = Minus: Regular tax AMT *\$42,500 [.25 x (\$148,400 112,500)] = \$33,525 p. I:14-3; Example I:14-3. \$100,000 25,000 20,000 3,400 \$148,400 33,525 \$114.875 \$ 29,868 ( 26,560) \$ 3,308 I:14-90. George and Meredith who are married with one dependent (20 years old) have a regular tax liability of \$26,132 after all credits, taxable income of \$125,000, tax preferences of \$25,000, and positive adjustments attributable to limitations on itemized deductions of \$18,700 this year. What is George and Meredith alternative minimum tax for 2007? Solution: Taxable Income \$125,000 Plus: Tax Preferences 25,000 Plus: Adjustments 18,700 Plus: Personal/dependency exemptions (\$3,400 x 3) 10,200 AMTI \$178,900 Exemption ( 55,325) Minimum Tax Base \$123,575 Tax Rate 26% Tentative Minimum Tax Minus Regular Tax ( 26,132) Alternative Minimum Tax *\$62,550 [.25 x (\$178,900 150,000)] = \$55,325 I:14-91. George and Sarah are married with two dependent children. George is working and earns \$30,000 which constitutes the couples AGI. Sarah is a full-time student for 10 months of the year. They incur \$5,500 of qualifying child care expenses. What is the amount of their child and dependent care

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COMP - I:14-89 Annie a single taxpayer has taxable income...

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