Question

4. In 2019, Chel (a surviving spouse) has an AMTI of $1,289,100. What is Chel's AMT exemption this year? a. $0. b. $44,575. c. $111,700. d. $1,020,600. aNU NOLLDET3 5. George, age 50, has deductible medical expenses of $12,000 under the regular tax system and an AGI of $100,000. What are the tax consequences for computing George's AMTI? a. George's AMTI is not affected by his medical expenses. b. $300 of George's medical expenses must be added back to compute his AMTI. C. $2,500 of George's medical expenses must be added back to compute his AMTI. d. All of George's medical expenses must be deducted to compute his AMTI.

Answer 1

4. Chel's AMT exemption in 2019 = 111700-(1289100-1020600)*0.25 = $44,575

5. $2,500 of George's medical expenses should be added back to compute his AMTI

For AMTI calculation medical expenses are only deductible to the extent they exceed 10% of AGI. For regular tax purposes it is 7.5% of AGI