When completing your 1040 tax form this year, there are three letters you need to keep in mind - AMT. AMT stands for alternative minimum tax, a figure that was designed to ascertain that the wealthy, estates and big corporations paid their fair share by eliminating some of the deductions and shelters that can be exploited for a big IRS tax refund. While legitimate deductions are not generally of great concern for the average taxpayer, read on ... being prepared could save you a little aggravation down the line when it comes to the AMT.

The AMT institutes a 26 percent or 28 percent rate with fewer deductions, with exemptions based on gross income. Although the rule is aimed at the wealthy, more and more middle-class earners are finding they are subject to the regulations. By Internal Revenue Service estimates, more than 23 million taxpayers will be subject to the AMT in 2007, compared to just 4 million in 2006.

Browse our other articles for more information about the AMT, who is subject to it and what you must do in the coming years to address it when calculating your own IRS tax refund. In order not be caught off guard on the AMT issue, be sure to complete your 1040 tax form early, send it in as early as possible and receive refunds early or get a jump start on paying up any federal or state taxes you may owe, so that you stay in good stead with the government.