In 2020, Deon and NeNe are married filing jointly. Deon and NeNes taxable income is $1,090,000, and they itemize their deductions as follows: real property taxes of $10,000, charitable contributions of $30,000, and mortgage interest expense of $40,000 ($700,000 acquisition debt for home). Use Exhibit 8-5 and Tax Rate Schedule for reference.

a. What is Deon and NeNe's AMT?

Individuals Schedule X-Single If taxable income is over:But not over: The tax is: $ 0 $ 9,875 10% of taxable income S 9.875 $ 40,125 $987.50 plus 12% of the excess over $9,875 S 40,125 $ 85.525 S4,617.50 plus 22% of the excess over $40,125 S 85.525 $163.300 $14,605.50 plus 24% of the excess over $85,525 $163,300 $207,350 $33,271.50 plus 32% of the excess over $163,300 $207,350 $518,400 $47,367.50 plus 35% of the excess over $207,350 $518,400 S156,235 plus 37% of the excess over $518,400 Schedule Y-1-Married Filing Jointly or Qualifying Widow(er) If taxable income is over:But not over: The tax is: S 0 $ 19.750 10% of taxable income S 19,750 $ 80,250 $1,975 plus 12% of the excess over $19,750 S 80,250 $171,050 $9,235 plus 22% of the excess over $80,250 $171,050 $326,600 $29,211 plus 24% of the excess over $171,050 S326,600 $414,700 S66,543 plus 32% of the excess over $326,600 S414,700 $622,050 $94,735 plus 35% of the excess over $414,700 $622,050 $167,307.50 plus 37% of the excess over $622,050 Schedule Z-Head of Household If taxable income is over: But not over: $ 0 $ 14,100 S 14,100 $ 53.700 S 53,700 $ 85,500 S 85,500 $163,300 S163.300 $207,350 $207,350 $518.400 $518.400 The tax is: 10% of taxable income $1,410 plus 12% of the excess over $14,100 $6,162 plus 22% of the excess over $53,700 $13,158 plus 24% of the excess over $85,500 $31,830 plus 32% of the excess over $163,300 $45,926 plus 35% of the excess over $207,350 $154,793.50 plus 37% of the excess over $518,400 Schedule Y-2-Married Filing Separately If taxable income is over:But not over: The tax is: S 0 $ 9,875 10% of taxable income S 9.875 $ 40.125 $987.50 plus 12% of the excess over $9,875 $ 40,125 $ 85,525 $4,617.50 plus 22% of the excess over $40,125 S 85,525 $163,300 S14,605.50 plus 24% of the excess over $85,525 S163,300 $207.350 $33,271.50 plus 32% of the excess over $163,300 S207,350 $311,025 $47,367.50 plus 35% the excess over $207,350 $311,025 $83,653.75 plus 37% of the excess over $311,025 EXHIBIT 8-5 2020 AMT Exemptions Filing Status Exemption Phase-Out Complete Phase-Out Begins at for This Level of This Level of AMTI AMTI $113,400 $1,036,800 Married filing jointly Married filing separately Head of household and single $1,490,400 745,200 56,700 518,400 72,900 518,400 810,000