Rodrigo and Raquel are married with no children and reported the following items on their 2019 tax return:
Adjusted gross income $190,000
Less: Deductions from adjusted gross income Qualified housing interest $10,500
State income taxes 13,000
Property taxes 7,000
Charitable contributions 4,000
?
Determine Rodrigo and Raquel's regular tax liability and, if applicable, the amount of their alternative minimum tax.
What will be an ideal response?
| Regular tax calculation: | |
| Adjusted gross income | $190,000 |
| Itemized deductions | (34,500) |
| Taxable income | $155,500 |
| Tax [$9,086 + {22%×($155,500 - $78,950)}] | $25,927 |
| Alternative minimum tax: | |
| Regular taxable income | $155,500 |
| Add: | |
| State income taxes | 13,000 |
| Property taxes | 7,000 |
| Tentative AMTI | $175,500 |
| Less: AMT exemption (married filing jointly) | (111,700) |
| Equals: AMTI | $63,800 |
| Tentative minimum tax liability (26%×$63,800) | $16,588 |
| Regular tax liability | (25,927) |
| Alternative minimum tax liability | $0 |
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