Question

what is his amt exemption under the following alternative circumstances? exhibit 8-5.required:he is married and files a joint return.he is married and files a separate return.his filing status is single.his filing status is head of household.

Answer 1

The amount of exemption for an individual under different filing status are as follows: married filing jointly - $3,950, married filing separately - $3,950, single - $3,950, head of household - $3,950.

Step-by-step explanation:

The amount of exemption for an individual under the alternative circumstances mentioned are as follows:

1. Married filing jointly: The personal exemption for a married couple filing jointly was $3,950 for the 2014 tax year.
2. Married filing separately: The personal exemption for a person filing a married, separate return was also $3,950 for the 2014 tax year.
3. Single: The personal exemption for a single person was $3,950 for the 2014 tax year.
4. Head of Household: The personal exemption for a head of household was $3,950 for the 2014 tax year.

Answer 2

AMT exemptions vary by marital status and filing status, with married filing jointly typically having higher exemptions than married filing separately. Singles and heads of households have different exemptions, impacting taxable income calculations.

Step-by-step explanation:

Exemptions under the Alternative Minimum Tax (AMT) system differ depending on marital status and filing status. For someone who is married and files a joint return, their exemption amount would be higher compared to someone who is married filing separately. A single filer or someone with a head of household status would have different exemption amounts, all of which affect the calculation of taxable income. Taxpayers must subtract deductions and exemptions from their adjusted gross income to determine their taxable income. Consequently, the payable income tax, including understanding the marginal tax rates, which range from 10% to 35% depending on income level, is computed. It should also be noted that for some taxpayers, the AMT may need to be calculated separately.