Sentences with phrase «pease reduces»

In 2017, Pease reduces itemized deductions by 3 percent of the amount by which adjusted gross income exceeds specified thresholds — $ 261,500 for single filers, $ 287,650 for heads of household, $ 313,800 for married couples filing jointly, and half of that for married couples filing separately.

Not exact matches

Since the «Pease» limitation reduced the benefits of itemized deductions (including charitable contributions), repealing it allows high earning taxpayers to go back to enjoying the full benefits of these deductions.

Itemized deductions: The TCJA wipes out several itemized deductions and modifies others in conjunction with the repeal of the «Pease rule» reducing deductions for upper - income taxpayers.

High - income taxpayers have their itemized deductions reduced by the limitation on itemized deductions, called «Pease» after the Ohio congressman who proposed the provision.

The limitation on itemized deductions (sometimes called «Pease» after the Ohio congressman who proposed it) reduces deductions for high - income taxpayers by 3 percent of the amount by which their AGI exceeds a threshold — $ 261,500 in 2017 ($ 287,650 for heads of household, $ 313,800 for married couples filing jointly, and half of that for married couples filing separately)-- but not by more than 80 percent of deductions claimed.

The infamous duo of PEP and Pease are rules that reduce deductions that would otherwise be allowed to relatively high - income taxpayers.

The Pease rule reduces your itemized deductions by $ 30,000, so you'll get to deduct $ 40,000 if you don't make the charitable contribution.

A rule that reduces itemized deductions for relatively high - income taxpayers is sometimes called the Pease rule, for the congressman who originated the idea.

High - income taxpayers have their itemized deductions reduced by the limitation on itemized deductions, called «Pease» after the Ohio congressman who proposed the provision.

The personal exemption phaseout and the Pease rule for reducing itemized deductions are revived, but at higher income levels than under prior law.

Although notably, once the PEP and Pease limitation is in effect, any above - the - line tax deductions become slightly more valuable than below - the - line strategies like charitable giving (because an above - the - line deduction is not only an outright tax deduction, but also reduces exposure to PEP and Pease themselves).

However, because Jerry's $ 300,000 income is beyond the AGI threshold, his deductions under the Pease limitation are reduced by $ 41,750 x 3 % = $ 1,253, so his total deductions are only $ 52,747, and in turn Jerry's taxable income after deductions would be $ 247,253 (ignoring Personal Exemptions for a moment), placing Jerry in the middle of the 33 % tax bracket.

Under the agreement so called «Pease Limitations» that reduce the value of itemized deductions are permanently repealed for most taxpayers but will be reinstituted for high income filers.

• Reinstates the Pease / PEP phaseouts for deductions; for married taxpayers with AGI above $ 300,000 ($ 250,000 single), the Pease limitation reduces total itemized deductions by 3 percent for the dollar amount of AGI above the thresholds.

And a direct negative effect on housing demand would come from the return of the Pease limitations, which would reduce the value of the mortgage interest deduction (MID) for taxpayers in high cost areas.