Coverdell Educational Savings Accounts Annual Contribution Limit $2,000 Contribution phase-out based on
modified AGI Married Filing Jointly $190,000-220,000 All Others 95,000-110,000 2016 Student Loan Interest Deduction Maximum interest deduction $2,500 Deduction phase-out based on
modified AGI Married Filing Jointly $135,000-165,000 All Others 65,000-80,000 American Opportunity Tax Credit Maximum Credit $2,500 Credit phase-out based on modifed AGI Married Filing Jointly $160,000-180,000 All Others 80,000-90,000 Lifetime Learning Credit Maximum Credit $2,000 Credit phase-out based on modifed AGI Married Filing Jointly $111,000-132,000 All Others 56,000-66,000
The taxpayer's
modified AGI must be no more than $127,000/$ 108,000 in 2014 (MFJ) or $63,000/$54,000 in 2014 (other filing status).
Jerome and Kay's
modified AGI for 2010 is $145,000, and it appears likely to be the same in 2011.
If, however, Bob's salary is $124,000 and interest income remains at $6,000, the full $25,000 maximum cannot be utilized since Bob's
modified AGI is $130,000.
Adoption credit--Line 51: The maximum adoption credit has risen to $10,000, and phases out over a higher range of
modified AGI ($150,000-$190,000).
This $2,000 annual contribution limit is phased out ratably for individual taxpayers with
modified AGI between $95,000 and $110,000, and for married taxpayers filing jointly with
modified AGI between $190,000 and $220,000.
Intended to offset a limited portion of an employee's share of FICA tax withholding, the credit phases out beginning at
modified AGI of $75,000 for single filers and $150,000 for joint returns.
An exception allows you to deduct up to $25,000 in rental real estate losses against non-passive income, but this loss allowance is phased out beginning at $100,000 in modified adjusted gross income (AGO and eliminated once your
modified AGI reaches $150,000.
For 2002, the contribution is phased out for joint filers with
modified AGI of at least $190,000 and less than $220,000 (formerly between $150,000 and $160,000).
Benefits can be phased out when
modified AGI reaches certain amounts built into the tax law (as with education credits).
Taxpayers with modified adjusted gross income (
modified AGI, defined in the IRS publications) under $150,000 ($75,000 prior to 2002) may qualify for the entire exclusion, but, as income grows, the exclusion phases out until no exclusion is available for taxpayers with
modified AGI more than $190,000 ($115,000 prior to 2002).
Starting in 1998, the definition of
modified AGI changed.
