Joan and Matthew are married, have two children, and report the following items on their 2020 tax return:

Determine Joan and Matthew’s regular tax liability and, if applicable, the amount of their alternative minimum tax. Write a memo to Joan and Matthew explaining the adjustments they will have to make in computing their alternative minimum tax.

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$ 248,000 Adjusted gross income Less: Deductions from adjusted gross income: Medical expenses Less: 7.5% x $248,000 Home mortgage interest $ 26,150 (18,600) S7,550 13,500 State income taxes 4,000 5,700 Property taxes Charitable contributions 7,000 Total itemized deductions (37,750)