- 4 -
based on the following computation and entries from petitioners'
income tax return:
I. Individual Income Tax Return - Form 1040
Adjusted Gross Income
(Form 1040, line 31) $83,056.42
Less: Itemized Deductions
(Schedule A) -19,563.95
Balance (Form 1040, Line 35) 63,492.47
Less: Exemptions
(Form 1040, Line 36) -29,400.00
Taxable Income
(Form 1040, Line 37) 34,092.47
Regular Tax (sec. 1(a))
(Form 1040, Line 38) 5,111.00
II. Itemized Expenses - Schedule A
Medical Expenses
Actual expenses $10,996.36
Less: 7.5% AGI -6,229.23
Deductible amount 4,767.13
State and Local Taxes 3,263.56
Interest Paid 3,585.76
Charitable Contributions 7,947.50
Total Itemized Deductions 19,563.95
III. Alternative Minimum Taxable Income
Taxable Income (Form 1040, Line 37) $34,092.47
Adjustments
Medical expenses (10% floor) 12,076.41
State and local taxes 3,263.56
Exemptions 29,400.00
Balance 68,832.44
Plus: Items of Tax Preference -0-
Alternative Minimum Taxable Income 68,832.44
IV. Alternative Minimum Tax
Alternative Minimum Taxable Income $68,832.44
Less: Exemption Amount -45,000.00
Taxable Excess 23,832.44
Times: applicable AMT rate x 26%
Tentative Minimum Tax 6,196.43
Less: Regular Tax -5,111.00
Alternative Minimum Tax 1,085.43
1The adjustment is computed as follows:
Actual Medical Expenses $10,996.36
Less: 10% AGI -8,305.64
AMT deductible amount 2,690.72
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Last modified: May 25, 2011