Question

Isabella and Mateo made an incredible amount of money this year, and their tax lawyer was able to use many deductions to reduce their adjusted gross income by millions of dollars. However, despite all of his attempts to get them out of paying as many taxes, they still had to pay some. Which type of tax MOST likely ensured that Isabella and Mateo were required to pay some taxes?

A. withholding tax
B. earned-income tax
C. alternative minimum tax
D. sales tax

Answer 1

Answer:

C. alternative minimum tax

Explanation:

Answer 2

The correct option is C.

What is an alternative minimum tax in simple words?

AMT is a tax levied on 'adjusted total income' in an FY wherein tax on normal income is lower than AMT on Adjusted total income. So, irrespective of normal tax, AMT has to be paid by taxpayers to whom AMT provisions apply.

Who pays the alternative minimum tax?

The AMT increased taxes for 23.3 percent of households with “expanded cash income” (a broad measure of income) between $200,000 and $500,000, 63.8 percent of those with incomes between $500,000 and $1 million, and 24.2 percent of households with incomes greater than $1 million.

Learn more about alternative minimum tax here https://brainly.com/question/25197410

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