The maximum deduction is $2,500, which is phased out for taxpayers with modified adjusted gross income
of $80,000 per person ($160,000 on a joint return).
In order to receive the maximum deduction, an individual filer must have modified adjusted gross income
of less than $80,000, or $160,000 for joint filers.
14) Individuals with income from controlled foreign corporations (CFCs) and passive foreign investment companies (PFICs) may be required to make additional adjustments to calculate their modified adjusted gross income
It was phased out once the taxpayer's modified adjusted gross income
exceeded $125,000 ($250,000 for married filing jointly).
To receive the maximum credit amount, a taxpayer must have modified adjusted gross income
in 2012 of less than USD52,000 and USD104,000 for joint filers.
In 2010 the credit is phased out ratably between modified adjusted gross income
of $50,000 to $60,000 for unmarried taxpayers and $100,000 to $120,000 for married taxpayers filing joint returns.
Modified adjusted gross income
refers to adjusted gross income (AGI) determined without regard to this exclusion and without regard to IRC Sections 137 (exclusions for qualified adoption expenses), 221 (deduction for student loan interest), 222 (deduction for higher education expenses, which expires 12-31-2009), 911, 931, or 933, (exclusions of foreign earned income or income earned in certain possessions of the United States) but determined after application of IRC Sections 86, (partial inclusion of Social Security and railroad retirement benefits), 469 (adjustments with respect to limitations of passive activity losses and credits) and 219 (adjustments for contributions to IRAs and SEPs).
A Roth IRA may generally accept a conversion from a traditional IRA (but for tax years beginning prior to 2010, modified adjusted gross income
cannot exceed $100,000).
In 2010, the existing $100,000 modified adjusted gross income
limit on the conversion of traditional IRAs to Roth IRAs will be eliminated.
For tax years 2009 and 2010, your modified adjusted gross income
(MAGI) must be less than $90,000 ($180,000 if married and filing jointly) to claim the Hope credit and less than $60,000 ($120,000 if married and filing jointly) for the Lifetime credit.
1, 2010, when the income limit on Roth conversions is permanently eliminated, the only taxpayers eligible for a Roth conversion are those whose modified adjusted gross income
is $100,000 or less, whether they file "married/joint" or "single.
reduced) depending on the taxpayer's modified adjusted gross income