Question

Select all that apply. Choose the deductions that reduce both regular taxable income and AMTI.

a) Mortgage Interest
b) Charitable Contributions
c) Student Loan Interest
d) State and Local Taxes

Answer 1

Mortgage Interest, Charitable Contributions, and Student Loan Interest are deductions that reduce both regular taxable income and AMTI. State and Local Taxes, while deductible for regular tax purposes, do not reduce AMTI.

Step-by-step explanation:

The deductions that reduce both regular taxable income and AMTI (Alternative Minimum Taxable Income) include:

• Mortgage Interest
• Charitable Contributions
• Student Loan Interest

These expenses can be deducted on both the regular tax calculation and the alternative minimum tax calculation, thus reducing the income subject to tax in both scenarios.

However, it's important to note that while State and Local Taxes are deductible for regular tax purposes, they are not deductible for AMTI.