Phase out of itemized deductions + personal exemptions - John R. Dundon II, Enrolled Agent
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Phase out of itemized deductions + personal exemptions

Phase out of itemized deductions + personal exemptions

If you bump up against certain income thresholds, your itemized deductions and personal exemptions start disappearing. The reduction does not apply to deductions for medical expenses, investment interest, nonbusiness casualty and theft losses, and gambling losses. Luckily, these thresholds are increased each year for inflation. For 2009, the applicable amount is $166,800 for married couples. For 2008, it’s $159,950. The reduction itself is phased out by 2010. For 2008 and 2009, you will lose only 1/3 of the amount under the full reduction computation which was effective last year. Unless the new Congress changes the law, you should get your full itemized deductions back in 2010.

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