Jaclyn Biggs, who files as a head of household, never paid AMT before 2016. In 2016, her $197,900 taxable income included $178,000 ordinary income and a $19,900 capital gain taxed at 15 percent. Her 2016 AMTI in excess of her exemption amount was $218,175.
a. Compute Jaclyn’s total income tax for 2016.
b. Assume that Jaclyn has a $5,200 minimum tax credit carry forward from 2016. Her 2017 taxable income is $179,100, all of which is ordinary income. Her 2017 AMTI in excess of her exemption amount is $146,900. Compute Jaclyn’s total tax for 2017 (use the 2016 tax rates) and her minimum tax carryforward into 2018.