Pitfalls You could run afoul of the alternative minimum tax if: -- You exercised incentive stock options, as opposed to nonqualified options, which are subject to regular tax only -- You have large deductions for state and local taxes, perhaps triggered by a big capital gain -- You're an owner, partner, or Subchapter S shareholder in a company that makes heavy use of accelerated depreciation, has large research expenses or net operating losses, or claims large investment or business credits -- You qualify for personal tax credits for the elderly, adoption, child, education, or dependent care -- You claim large deductions for unreimbursed employee expenses or professional dues -- You have medical expenses that exceed 10% of your adjusted gross income -- Your income is more than $150,000 on a joint return, or $112,500 on a single return DATA: COMMERCE CLEARING HOUSE, BUSINESS WEEK Return to main story

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