Brenda correctly has calculated her regular tax liability to be $32,500 and her tentative minimum tax (TMT) to be $36,300.Additionally, Brenda has an adoption expense credit (personal, nonrefundable credit) of $6,200.What is Brenda's total Federal income tax liability?
A)$26,300.
B)$30,100.
C)$32,500.
D)$36,300.

Question

Quizplus · Accepted Answer

Brenda's TMT is higher than her regular tax liability, which means she is subject to the Alternative Minimum Tax (AMT). To calculate her total tax liability, we need to compare her TMT to her regular tax liability and determine which is higher.

Regular tax liability: $32,500 
Tentative minimum tax: $36,300 
Adoption expense credit: $6,200

Since Brenda's regular tax liability is lower than her TMT, she must pay the higher amount which is the TMT. However, we need to adjust for her adoption expense credit.

$36,300 - $6,200 = $30,100

Therefore, Brenda's total Federal income tax liability is $30,100.

Brenda Correctly Has Calculated Her Regular Tax Liability to Be