Tax Topic

Itemized deductions and Exemptions phase out are back

Itemized deductions and personal exemptions are again phased out for 2017 depending on overall income. Itemized deductions are phased out by 3% of the excess of Adjusted Gross Income (AGI) over $313,800 for joint filers and $269,500 for single filers. The overall phase out amount cannot be more than 80% of the total itemized deductions.

The itemized-deductions phase-out does not apply to medical expenses, investment interest expense, non-business casualty losses, or gambling losses.

The per-person $4,050 exemption phases out as well: starting at:

The good news is that the phase outs are eliminated for 2018 as part of the new tax bill.


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