Calendar year 2021
Resident alien husband and wife with two children (age 7, 9), both of whom qualify for the child tax credit; one spouse earns all the income, none of which is foreign-source income. A joint return is filed. AMT liability is less than regular tax liability.
Calculations based on 2020 tax tables.
|Long-term capital gain (on assets held for more than one year)||3,000|
|Total gross income||171,500|
|Adjusted gross income (AGI)||171,500|
|On taxable income of 143,400 (146,400 less capital gain of 3,000) at joint-return rates||22,045|
|On 3,000 capital gain at 15%||450|
|Total tax before credits||22,495|
|Credits (child tax credit equal to 2,000 per child)||(4,000)|