Final answer:
The alternative minimum tax (AMT) is a separate tax calculation that ensures high-income individuals pay at least a minimum amount of tax. In 2021, the AMT rates for individuals range from 26% to 28% for income up to $199,900 and 28% for income above that threshold. The correct AMT rate option is 20%.
Step-by-step explanation:
The alternative minimum tax (AMT) is a separate tax calculation that was introduced in the United States to ensure that high-income individuals, corporations, and estates pay at least a minimum amount of tax. It is designed to prevent these entities from taking advantage of tax credits, deductions, and other tax benefits to significantly reduce their tax liability.
The AMT rate for individuals can vary depending on their income level and filing status. In 2021, the AMT rates for individuals range from 26% to 28% for income up to $199,900 (or $99,950 if married filing separately), and 28% for income above that threshold.
For the given options, the correct answer would be 20%, as none of the provided options match the current AMT rates.