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).
The tax threshold has risen to $10,764 of adjusted gross income
for single and married filing separate taxpayers, and $21,527 for married filing joint, surviving spouse and head of household taxpayers.
This would be phased out for taxpayers with adjusted gross incomes
between $50,000 and $70,000.
The 10% IRA early-withdrawal penalty is waived for withdrawals used for medical expenses, to the extent the withdrawal exceeds 7.5% of adjusted gross income
* A FAMILY TAX CREDIT OF $500 for each qualifying child would be available to families with adjusted gross incomes
For 1993 returns, taxpayers (1) whose modified 1993 adjusted gross incomes
(AGIs) exceed their 1992 AGIs by more than $40,000 and (2) whose 1993 AGIs exceed $75,000 (subject to certain exceptions) cannot pay estimates based on last year's tax liability.
The phaseout of itemized deductions affects both married and single taxpayers with adjusted gross incomes
(AGIs) of $108,450 and above.
Taxpayers with current tax year adjusted gross incomes
over $75,000 and current year incomes more than $40,000 higher than the previous year's were singled out and, in effect, required to make estimated tax payments equal to 90% of the current year's tax liability.
President Clinton campaigned on a pledge to raise the marginal tax rate to 36% (from 31%) for married taxpayers with adjusted gross incomes
over $200,000 (for single taxpayers, the hurdle is $150,000).
(This $25,000 limit is phased out for individuals with adjusted gross incomes
between $100,000 and $150,000.)