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.

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