Harmony reports a regular tax liability of $15,000 and tentative minimum tax of $17,000. Given just this information, what is her alternative minimum tax liability for the year

Respuesta :

Answer:

$2,000

Explanation:

Tax liability is defined as the total amount of tax debt that is owed by an individual or entity to a taxing authority at a pat time. It usually refers to the income minus nonrefundable credit such as child tax credit, dependent care credit, and so on.

In this instance Harmony's regular tax liability is declared $15,000 and tentative minimum of $17,000.

Since Harmony's tentative minimum is greater than her declared tax liability, the extra amount ($2,000) is her alternative minimum tax liability for the year.