Problem $14-32($Algo$)[$LO $14-8]$

For all the following cases, assume that taxable income does not include any dividend income or capital gain.

Required:

Compute AMT $($if any$)$ if Mr$.$ and Ms$.$ Baker$$s$,$ married filing jointly, reported taxable income of $$228,000$ and AMTI before exemption of $$215,600.$

Compute AMT $($if any$)$ if Mr$.$ Costa$$s$,$ single taxpayer, reported taxable income of $$188,640$ and AMTI before exemption of $$210,600.$

Compute AMT $($if any$)$ if Ms$.$ Juma's, a single taxpayer, reported taxable income of $$670,275$ and AMTI before exemption of $$823,000.$

Assume the taxable year is $2023.$ Use Individual Tax Rate Schedules.

Individual Tax Rate Schedules

Married Filing Jointly and Surviving Spouse

If taxable income is The tax is

Not over $$22,00010\%$ of taxable income

Over $$22,000$ but not over $$89,450$ $$2,200\mathrm{.}00+12\%$ of excess over $$22,000$

Over $$89,450$ but not over $$190,750$ $$10,294\mathrm{.}00+22\%$ of excess over $$89,450$

Over $$190,750$ but not over $$364,200$ $$32,580\mathrm{.}00+24\%$ of excess over $$190,750$

Over $$364,200$ but not over $$462,500$ $$74,208\mathrm{.}00+32\%$ of excess over $$364,200$

Over $$462,500$ but not over $$693,750$ $$105,664\mathrm{.}00+35\%$ of excess over $$462,500$

Over $$693,750$ $$186,601\mathrm{.}50+37\%$ of excess over $$693,750$

Married Filing Separately

If taxable income is The tax is

Not over $$11,00010\%$ of taxable income

Over $$11,000$ but not over $$44,725$ $$1,100\mathrm{.}00+12\%$ of excess over $$11,000$

Over $$44,725$ but not over $$95,375$ $$5,147\mathrm{.}00+22\%$ of excess over $$44,725$

Over $$95,375$ but not over $$182,100$ $$16,290\mathrm{.}00+24\%$ of excess over $$95,375$

Over $$182,100$ but not over $$231,250$ $$37,104\mathrm{.}00+32\%$ of excess over $$182,100$

Over $$231,250$ but not over $$346,875$ $$52,832\mathrm{.}00+35\%$ of excess over $$231,250$

Over $$346,875$ $$93,300\mathrm{.}75+37\%$ of excess over $$346,875$

Head of Household

If taxable income is The tax is

Not over $$15,70010\%$ of taxable income

Over $$15,700$ but not over $$59,850$ $$1,570\mathrm{.}00+12\%$ of excess over $$15,700$

Over $$59,850$ but not over $$95,350$ $$6,868\mathrm{.}00+22\%$ of excess over $$59,850$

Over $$95,350$ but not over $$182,100$ $$14,678\mathrm{.}00+24\%$ of excess over $$95,350$

Over $$182,100$ but not over $$231,250$ $$35,498\mathrm{.}00+32\%$ of excess over $$182,100$

Over $$231,250$ but not over $$578,100$ $$51,226\mathrm{.}00+35\%$ of excess over $$231,250$

Over $$578,100$ $$172,623\mathrm{.}50+37\%$ of excess over $$578,100$

Single

If taxable income is The tax is

Not over $$11,00010\%$ of taxable income

Over $$11,000$ but not over $$44,725$ $$1,100\mathrm{.}00+12\%$ of excess over $$11,000$

Over $$44,725$ but not over $$95,375$ $$5,147\mathrm{.}00+22\%$ of excess over $$44,725$

Over $$95,375$ but not over $$182,100$ $$16,290\mathrm{.}00+24\%$ of excess over $$95,375$

Over $$182,100$ but not over $$231,250$ $$37,104\mathrm{.}00+32\%$ of excess over $$182,100$

Over $$231,250$ but not over $$578,125$ $$52,832\mathrm{.}00+35\%$ of excess over $$231,250$

Over $$578,125$ $$174,238\mathrm{.}25+37\%$ of excess over $$578,125$