This section briefly discusses an additional tax you may have to pay.

The tax law gives special treatment to some kinds of income and allows special deductions and credits for some kinds of expenses. Taxpayers who benefit from the law in these ways may have to pay at least a minimum amount of tax through an additional tax. This additional tax is called the alternative minimum tax (AMT).

You may have to pay the alternative minimum tax if your taxable income for regular tax purposes, combined with certain adjustments and tax preference items, is more than:

• $45,000 if your filing status is married filing a joint return (or a qualifying widow(er) with dependent child),

• $33,750 if your filing status is single or head of household, or

• $22,500 if your filing status is married filing a separate return.

Adjustments and tax preference items. The more common adjustments and tax preference items include:

• Addition of personal exemptions,

• Addition of the standard deduction (if claimed),

• Addition of itemized deductions claimed for state and local taxes, certain interest, most miscellaneous deductions, and part of medical expenses,

• Subtraction of any refund of state and local taxes included in gross income,

• Changes to accelerated depreciation,

• Difference between gain or loss on the sale of property reported for regular tax purposes and AMT purposes,

• Addition of certain income from incentive stock options,

• Change in income from certain installment sales for which the installment method cannot be used for AMT purposes,

• Change in certain passive activity loss deductions,

• Addition of certain depletion that is more than the adjusted basis of the property,

• Addition of part of the deduction for certain intangible drilling costs, and

• Addition of tax-exempt interest on certain private activity bonds.

For more information about the alternative minimum tax, see the instructions for Form 1040, line 48, and Form 6251, Alternative Minimum Tax- Individuals.