Martin Nissenbaum, a tax partner at Ernst & Young, figures that a couple with regular taxable income of $100,000 last year will pay AMT if the total of their deductions that are not allowed under the AMT exceeds $30,770. At $200,000 the trigger is $33,284. For singles those triggers are about $2,200 less.

The AMT is destined to catch even more taxpayers. Some 6.3 million are projected by the Treasury Department to incur it by 2005 and 17 million by 2010, with over half the AMT bill that year falling on people with incomes under $100,000. By proposing lower regular tax rates without touching the AMT, Bush's plan could push 27 million taxpayers into the AMT by 2010, says the congressional Joint Committee on Taxation.

Those with large investments, tax shelters, and variable incomes can often minimize the AMT. But for ordinary folks, there's usually not much you can do. So while a cut in tax rates is getting the spotlight in Washington, many taxpayers might also like a reduction of the AMT, or its repeal.

Where To Learn More

www.fairmark.com/amt A clearly written tax-guide site that explains how the AMT affects taxes on investments.

www.lasallebank.com/vip Examples of how the AMT is calculated, from Chicago's LaSalle Bank. Click on "Research and News," then "Individuals."

www.irs.gov Download IRS Form 6251 and guidance on figuring the AMT. The standard 1040 instructions include a work sheet for determining if you need Form 6251.

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