In 2017, Brenda has calculated her regular tax liability to be $32,500 and her tentative minimum tax (TMT) to be $36,300. Additionally, Brenda holds an alternative minimum tax credit of $6,200 from 2013.

What is Brenda's total 2017 Federal income tax liability?
A)$26,300.
B)$30,100.
C)$32,500.
D)$36,300.

Question

​In 2017, Brenda has calculated her regular tax liability to be $32,500 and her tentative minimum tax (TMT) to be $36,300. Additionally, Brenda holds an alternative minimum tax credit of $6,200 from 2013. ​
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What is Brenda's total 2017 Federal income tax liability?
A)​$26,300.
B)​$30,100.
C)​$32,500.
D)​$36,300.

Quizplus · Accepted Answer

Brenda's total 2017 Federal income tax liability is the higher of her regular tax liability ($32,500) or her tentative minimum tax (TMT) ($36,300). Therefore, her tax liability is $36,300. The alternative minimum tax credit from 2013 cannot be used to reduce her tax liability below the TMT.

​In 2017, Brenda Has Calculated Her Regular Tax Liability to Be

In 2017, Brenda Has Calculated Her Regular Tax Liability to Be