1) Caroline and Clint are married, have no dependents, and file a joint return i
ID: 2382255 • Letter: 1
Question
1) Caroline and Clint are married, have no dependents, and file a joint return in 2013. Use the following selected data to calculate their federal income tax liability.
AMTI $325,000
Regular income tax liability $61,001
AMT tax preferences $107,000
2) Explain the ethical implications where a tax preparer knowingly prepares a return with false information.
3) Joe is 50 years old, unmarried without children, and has earnings during 2012 of $8,000. He is not claimed as a dependent on another taxpayer's return. Does he qualify for the earned income credit? If so, calculate the amount of credit that is available to him.
Explanation / Answer
AMIT
305 000
Amt exemption 62550-25%(350000-150 000)
23800
amtbase
281200
175000x26%
45 500
106200x28%
29736
Tentative amit
75236
Regular income
610011
AMIT
14235
Amt performance of 980000 are already included in AMTI . the federal income tax liability is the summation of the regular income tax liability and the amt (61001+14235=75236)
AMIT
305 000
Amt exemption 62550-25%(350000-150 000)
23800
amtbase
281200
175000x26%
45 500
106200x28%
29736
Tentative amit
75236
Regular income
610011
AMIT
14235
Amt performance of 980000 are already included in AMTI . the federal income tax liability is the summation of the regular income tax liability and the amt (61001+14235=75236)
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