Question

If a taxpayer is liable to pay $8,950 under AMT law but $7,500 according to the regular tax system, the taxpayer will need to pay taxes according to the ______.

Answer 1

Answer:

AMT

Explanation:

You only have to worry about the AMT if your adjusted gross income exceeds the exemption. If you make that income or above, that's the AMT taxable income. You may have to calculate your alternative minimum taxable income and pay the higher tax.

This fits the sentence perfectly!!!

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Answer 2

Answer:

If a taxpayer is liable to pay $8,950 under AMT law but $7,500 according to the regular tax system, the taxpayer will need to pay taxes according to the AMT law.

Explanation:

Every tax payer must pay the greater of Alternate minimum tax or regular income tax.

Therefore,

If a taxpayer is liable to pay $8,950 under AMT law but $7,500 according to the regular tax system, the taxpayer will need to pay taxes according to the AMT law.