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In: Accounting

During all of 2019, Mr. and Mrs. Clay lived with their four children (all are under...

During all of 2019, Mr. and Mrs. Clay lived with their four children (all are under the age of 17). They provided over one-half of the support for each child. Mr. and Mrs. Clay file jointly for 2019. Neither is blind, and both are under age 65. They reported the following tax-related information for the year. Taxable Income is $114,500.

Salary income 145,000

Prize from local radio station 10,500

Medical expenses (no health insurance) 4,000

Real estate taxes 8,200

Alimony paid by Mr. Clay (divorced in 2015) 12,000

State income taxes withheld in 2019 2,800

Federal income tax withholding 7,500

Qualified home mortgage interest (acquisition debt of $300,000) 15,000

Charitable contributions 4,000

What is the couple's Tentative Minimum Tax?

Expert Solution

Here is the calculated Taxe of Mr. & Mrs Clay as per 1040 individual income tax return ($1,425)

Form-1040

Here is the Tentative Minimum Tax in Form-6251 Line-9 . ($3,328)

ekkarill92 answered 2 years ago

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