However, both types of accounts have
AGI caps that may limit your ability to participate.
Generally, the deduction is reduced 10 percent for each $ 1,000 your income exceeds
the AGI cap.
Not exact matches
If your spouse isn't eligible for a plan either, or if your
AGI is less than the annual
cap, you can deduct your contribution.
For instance, if my
AGI doesn't meet the maximum
cap until September, can I contribute from Jan thru Aug, and stop contributing Sept thur Dec when my year to date earnings will exceed the
AGI max?
Homeowner Tax Items • Extends through the end of 2013 mortgage debt tax relief; important rule that prevents tax liability from many short sales or mitigation workouts involving forgiven, deferred or canceled mortgage debt • Deduction for mortgage insurance extended through the end of 2013; reduces the cost of buying a home when paying PMI or insurance for an FHA or VA - insured mortgage; $ 110,000
AGI phaseout remains • Extends the section 25C energy - efficient tax credit for existing homes through the end of 2013; important remodeling market incentive, although the lifetime
cap remains at $ 500.