Question

Item 11Item 11 In 2018, Wilma (who files as a head of household) reported regular taxable income of $150,000. She itemized her deductions, deducting $10,000 in charitable contributions and $2,000 in state income taxes. What is Wilma’s alternative minimum taxable income?

Answer 1

Taxable income = $152,000

Step-by-step explanation:

Here,

Regular taxable income = $150,000

State income taxes = $2000

Therefore, the taxable income will be = Regular taxable income + State income

Taxable income = $(150,000 + $2000) = $152,000

The amount Wilma spent on charitable contributions, i. e., $10,000 will not consider as taxable income.

According to federal and state law, a charitable contribution is a deductible amount from a person's taxable income. So, it will not be added to the minimum taxable income.