Question

If a taxpayer is liable to pay $8,950 under AMT law but $7,500 according to the regular tax system, the taxpayer will need to pay taxes according to the______________.

Answer 1

AMT law

Step-by-step explanation:

The alternative minimum tax (AMT) is designed to ensure that taxpayers pay a fair share of taxes or, as the name states, at least the minimum. The AMT follows a different set of rules encompassing a wider range of taxable items, which may decrease deductions and therefore increase the amount liable to be paid. Whenever applied, the AMT should be paid instead of the regular tax system amount.