Which of the following statements regarding the AMT exemption amounts is not true? The amount of the exemption depends on the taxpayer's filing status. The exemption amount is completely phased-out for high income taxpayers. Taxpayers must choose whether they will claim the exemption or itemize deductions. None of these statements is false (all of these statements are true).

Question

Braylon Conley

Business

23 May, 05:46

Which of the following statements regarding the AMT exemption amounts is not true? The amount of the exemption depends on the taxpayer's filing status. The exemption amount is completely phased-out for high income taxpayers. Taxpayers must choose whether they will claim the exemption or itemize deductions. None of these statements is false (all of these statements are true).

+1

Answers (1)

Know the Answer?

Tommy Hernandez · Answer 1

Taxpayers must choose whether they will claim the exemption or itemize deductions. FALSE

Explanation:

"The AMT exemption functions something like a standard deduction for the alternative minimum tax. In lieu of all the deductions and other adjustments that are taken away when calculating AMTI, taxpayers can reduce their AMT income by claiming the exemption amount for their filing status instead. Basically, if your income exceeds the exemption amount for your filing status, you're subject to the AMT. The AMT is then calculated on what's left over after the exemption has been subtracted. "

Reference: Perez, William. "The Alternative Minimum Tax-How It Works and How to Calculate It." The Balance, The Balance, 14 May 2019