Question

Q1. Elijah is single. He holds a $19,000 AMT credit from 2018. In 2019, his regular tax liability is $47,500 and his tentative minimum tax is $40,375. How much of the AMT credit can Elijah use in 2019?

a. Bristol, who is single, has AMTI of $570,200. Her AMT exemption is (chart below)

b. Marley and Naila are married and file a joint tax return. Their AMTI is $1,125,200. Their AMT exemption is (chart below)

Status Exemption $111,700 71,700 55,850 Phaseout Begins at Ends at $1,020,600 $1,467,400 510,300 797,100 5 10,300733,700 Married, joint Single or head of household Married, separate

Answer 1

Answer -

1. Answer -

Elijah holds AMT credit from 2018 = $19000

Elijah regular tax liability (2019) = $47500

Elijah tentative minimum tax (2019) = $40375

Here,

As per rules and regulations,

The maximum amount of AMT Credit claimable each year was the excess amount of regular tax liability over its computed amount of tentative minimum tax

So,

= $47500 - $40375

= $7125

AMT credit can Elijah use in 2019 = $7125

a. Answer -

Bristol is single.

Bristol AMTI = $570200

So,

Bristol AMT exemption = $71700 (as per chart)

Status	Exemption	Phaseout
		Begins at	Ends at
Single	$71700	$510300	$797100

b. Answer -

Marley and Naila are married and file a joint tax return.

Marley and Naila AMTI = $1125200

So,

Marley and Naila AMT exemption = $111700 (as per chart)

Status	Exemption	Phaseout
		Begins at	Ends at
Married, joint	$111700	$1020600	$1467400