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I. Individual Income Tax Return - Form 1040
Adjusted Gross Income
(Form 1040, lines 32/33 $37,850
Less: Itemized Deductions
(Schedule A) -28,403
Balance (Form 1040, Line 36) 9,447
Less: Exemptions
(Form 1040, Line 37) -5,300
Taxable Income
(Form 1040, Line 38) 4,147
Tax (secs. 1(d), 3(c)) 619
Regular Tax (secs. 26(b)(1), (2)(A), 55(c)(1)) 619
II. Itemized Expenses - Schedule A
Charitable Contributions $1,500
Miscellaneous itemized deductions
(Unreimbursed employee expenses) +26,903
Total Itemized Deductions 28,403
III. Alternative Minimum Taxable Income
Taxable Income (Form 1040, line 38) $ 4,147
Adjustments
Miscellaneous itemized deductions
(Unreimbursed employee expenses) +26,903
Exemptions +5,300
Balance 36,350
Plus: Items of Tax Preference -0-
Alternative Minimum Taxable Income 36,350
IV. Alternative Minimum Tax
Alternative Minimum Taxable Income $36,350
Less: Exemption Amount -22,500
Taxable Excess 13,850
Times: applicable AMT rate x 26%
Tentative Minimum Tax 3,601
Less: Regular Tax -619
Alternative Minimum Tax 2,982
Our analysis necessarily begins with section 55, the section
of the Internal Revenue Code that imposes the alternative minimum
tax. Initially, we note that the alternative minimum tax is
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Last modified: May 25, 2011