Calendar year 2023
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 2023 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 140,800 (143,800 less capital gain of 3,000) at joint-return rates||21,591|
|On 3,000 capital gain at 15%||450|
|Total tax before credits||22,041|
|Credits (child tax credit equal to 2,000 per child)||(4,000)|