Items commonly added back to regular taxable income in computing Alternative Minimum Tax (AMT) income include all of the following except:

State income taxes (subject to $10,000 limit)

Real property taxes (subject to $10,000 limit)

Tax-exempt interest from private activity bonds

Charitable contributions limited to 50% of AGI.

Which of the following statements is correct?

If the tentative minimum tax is $120,000 and the regular income tax liability is $100,000, AMT is $120,000.

If the tentative minimum tax is $100,000 and the regular income tax liability is $120,000, AMT is $20,000.

If the tentative minimum tax is $100,000 and the regular income tax liability is $120,000, AMT is a negative $20,000.

If the tentative minimum tax is $120,000 and the regular income tax liability is $100,000, AMT is $20,000.

Loyd and Heidi Forman living in Portland, Oregon, with AGI of $99,800 and pay for assistant child care of $15,000 per year for their two child: Brett who is 21 years old and disabled in wheelchair and Kayla who is 12 years old and in elementary school.

For tax year 2019, what amount of eligible Child and Dependent Care Credit can Mr. and Mrs. Forman take?

$3,000

$0

$500

$2,000

$1,200

The Daniel and Kim Lee filed a joint return for 2019. They provide more than 50% of the support of Carla, Ellie, and Albert. Carla (age 18) is a cousin and earns $2,800 from a part-time job. Ellie (age 25) is their daughter and is a full-time law student. She received a $7,500 scholarship for tuition from her law school. Albert is a brother who is a citizen of China but resides in USA. Carla and Ellie live with the Lee Family. How many dependents can the Lees claim?

None

One

Two

Three