The personal exemption phase-out kicks in when the taxpayer’s AGI exceeds either threshold:
- $305,050 if MFJ and QW
- $152,525 if MFS
- $254,200 if single, and
- $279,650 if head of household
Personal Exemption Phase out. For every $2500 in excess of the above affected threshold, your personal exemption deduction ($3,950 for 2014) will be reduced by 2% or portion thereof.
Pease Limitation affects the itemized deductions that can be taken once AGI exceeds the above thresholds. The reduction is 3% of the total itemized deductions.