Calendar year 2020
Resident alien husband and wife with two children, 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 preliminary 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|
|Less - standard deduction||24,800|
|On taxable income of 143,700 (146,700 less capital gain of 3,000) at joint-return rates||23,194|
|On 3,000 capital gain at 15%||450|
|Total tax before credits||23,644|
|Less - credits (child tax credit equal to 2,000 per child)||4,000|