Exemption & Pease Limitation

 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.


Pursuant to US Treasury Department Regulations, you are advised that any information and advice, including any attachments and enclosures, may not be used for the purpose of (i) avoiding any tax liabilities and or penalties under the Internal Revenue Code, or (ii) promoting, marketing or recommending to any other person(s) any tax-related matters addressed herein.