Q1 Melody and Todd are married and have employee wages of $250,000 each in 2018. They have no other income. How much additional 0.9% Medicare tax will Melody and Todd have to pay or receive as a refund when they file their 2018 income tax return?

a. $1,350 will be due with their return in addition to amounts withheld.

b. $900 will be refunded with their return.

Q2

Which of the following itemized deductions may not be deducted in computing the individual alternative minimum tax?

a. Qualified home mortgage interest

b. Medical expenses (limited to 7.5 percent of AGI)

c. Charitable deductions

d. State income taxes

e. All of these choices are correct.

c. $1,350 will be refunded with their return.

Q3

Which of the following is not an adjustment or tax preference item for 2018 for purposes of the individual alternative minimum tax (AMT)?

a. Certain passive losses

b. Interest from private activity bonds

c. Cash charitable contributions

d. State income tax refunds

e. All of these choices are adjustment or tax preference items for AMT.

d. $3,600 will be due with their return in addition to amounts withheld.