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19 February, 21:11

Charlie's regular tax liability is $43,695. His tentative minimum tax is $58,304. He doesn't have any tax credits. What is the amount of Charlie's alternative minimum tax (AMT) and how much will he actually pay in tax for the current year?

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  1. 19 February, 21:14
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    a. AMT = $14,609

    b. Tax to pay = $58,304

    Explanation:

    a, What is the amount of Charlie's alternative minimum tax (AMT)

    AMT = Tentative minimum tax - Regular tax liability = $58,304 - $43,695 = $14,609

    Therefore, Charlie's AMT is $14,609.

    b. How much will he actually pay in tax for the current year?

    Charlie will pay $58,304 for the current year since its tentative minimum tax is greater than his regular tax liability by $14,609.
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