Tax Bill Makes Minor Changes in AMT Calculations

The Senate-passed version of the tax bill would provide minor relief from the Alternative Minimum Tax (AMT) by allowing the enhanced child credit to be claimed against the AMT. Refundable tax credits would no longer be disallowed as well under AMT calculations. The AMT exclusion for married couples would increase by $6,000 per year through 2004 for married couples and $3,000 per year for single filers. The changes would have the effect of increasing the amount of income someone earns before being subject to the AMT.