What is the procedure for calculation of Minimum Alternate Tax?

Tax homework help, please?

• Super confused so if anyone could spare a minute I would greatly appreciate it. Sam is unmarried and has one young daughter, Sue. Sam qualifies as a head of household for tax purposes. Sue is his dependent. Sam has $15,000 of earned income and has no other income. Income tax of $500 was withheld from his wages by his employer. Assuming no inflation adjustments, what are Jean's tax consequences for the current year? In making this calculation, assume that Jean does not itemize deductions and that no tax credits apply other than the credits under section 24, 31, and 32. To calculate his initial tax liability, use the table from Revenue Procedure 2006-53. I don't get where the $500 comes in. Also, does 32(c)(B)(vi)(II) come into play in this problem? Would Sue be under the Dependent Care Credit or the Child Tax Credit? How are you supposed to put the Credit for Witholding on Wages and Earned Income Credit into the equation? Any insight would be appreciated.

• Answer:

  Who is Jean? She just suddenly appeared in your question out of nowhere. Before that, there were Sam and Sue. If your question is about SAM's tax, he wouldn't have any, so would get the whole $500 refunded if it was federal income tax. He'd also be eligible for an earned income credit - from the info that he qualifies as head of household, that says that Sue must be living with him for over half the year.