Question

During all of 2019, Mr. and Mrs. Clay lived with their four children (all are under the age of 17). They provided over one-half of the support for each child. Mr. and Mrs. Clay file jointly for 2019. Neither is blind, and both are under age 65. They reported the following tax-related information for the year. Taxable Income is $114,500.

Salary income 145,000

Prize from local radio station 10,500

Medical expenses (no health insurance) 4,000

Real estate taxes 8,200

Alimony paid by Mr. Clay (divorced in 2015) 12,000

State income taxes withheld in 2019 2,800

Federal income tax withholding 7,500

Qualified home mortgage interest (acquisition debt of $300,000) 15,000

Charitable contributions 4,000

What is the couple's Tentative Minimum Tax?

Answer 1

Particulars	Amount	Amount
Regular taxable income		$ 114,500.00
Add: Taxes itemized		$   10,000.00
AMTI		$ 124,500.00
Less: AMT exemption		$ 111,700.00
AMT base		$   12,800.00
Tentative minimum tax		$      3,328.00
[$12,800 × 26%]
Regular tax		$   21,654.50
[$14,382.50+($114,500-$84,200) × 24%
Alternate minimum tax		$                  -

Couple are not required to pay AMT as their tentative minimum tax is not greater than regular tax.

AMT is $0.

Please rate.