Question
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
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?
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