Scott and Cindy Muir had alternative minimum taxable income of $970,000 in the current year

and file a joint return. For purposes of computing the alternative minimum tax, their exemption is

A. $25,000

B. $55,850

C. $71,700

D. $111,700

A taxpayer does not have to pay estimated taxes if

A. The taxpayers tax liability for the previous year was less than $1,000.

B. The taxpayers withholding covers 90% of the tax liability for the previous year.

C. The taxpayers Earned Income Credit will exceed his or her tax liability for the current year.

D. All of the answers are correct

Her Year 1 tax liability was $12,000 and her Year 2 income tax withholding will be $9,750.

B. Her Year 1 tax liability was $12,000 and her Year 2 income tax withholding will be $9,000.

C. Her Year 1 tax liability was $5,000 and her Year 2 income tax withholding will be $6,000.

D. Her Year 1 tax liability was $9,000 and her Year 2 income tax withholding will be $8,500.