Which of the following items is added back to regular taxable income to calculate Alternative Minimum Taxable Income (AMTI) for an individual?

Answer options:

Charitable contributions.

State and local income tax deduction.

Mortgage interest on a loan used to buy the principal residence.

Medical expenses in excess of 7.5% AGI.

How to approach this question

Memorize the AMT add-backs: 'PANICTS' (Passive losses, Accelerated depreciation, NOL, Installment method, Contracts, Tax deductions, Standard deduction). Taxes are the big one for individuals.

Full Answer

B.State and local income tax deduction.✓ Correct

State and local taxes (SALT) deducted on Schedule A are not allowed for AMT and must be added back to taxable income to determine AMTI.

Common mistakes

Thinking charitable contributions or home mortgage interest are add-backs.

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