Question

In the current year, 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

C. $152,000

Step-by-step explanation:

Given that

Regular taxable income = 150000

State income = 2000

Therefore

Wilma alternative minimum taxable income = regular taxable income + state income taxes

Thus

= 150000 + 2000

= $152000

NOTE that, charitable contributions are not part of taxable income. Taxable income refers to the amount of income used in calculating tax that ab individual would pay.

Answer 2

Answer:

152,000

Step-by-step explanation:

In this question, we are asked to calculate Wilma’s alternative minimum taxable income.

We proceed as follows;

Mathematically ;

Regular taxable income = 150,000

+ State income tax = 2,000

+ Exemptions = 0( no claims according to this particular question)

Total alternative minimum taxable income =

150,000 + 2,000 + 0 = 152,000