Sentences with phrase «phaseout range»
The phrase "phaseout range" refers to a gradual reduction or elimination of something within a specific range. Full definition
Many phaseouts create significant marriage penalties — or bonuses — because the phaseout range for married couples is less than twice that for single tax filers.
taxpolicycenter.org
Many phaseouts are indexed for inflation so that the phaseout ranges remain fixed in real terms.
For married couples the phaseout range begins at MAGI of $ 160,000 and the credit is completely phased out at MAGI of $ 180,000.
The phaseouts also create hidden taxes over the phaseout range and diminish the effectiveness of the credits by encouraging the very activities they are designed to spur.
The phaseout range for joint filers is between $ 160,000 and $ 180,000 of MAGI.
If you're married filing jointly, the phaseout range is $ 186,000 to $ 196,000.
For 2018, the phaseout range is $ 120,000 to $ 135,000.
Income within the phaseout range is mostly taxed in the 35 % tax bracket, so roughly speaking PEP increases the marginal tax rate in this range by about 1 percentage point (35 % times 3 %) for each personal exemption (but double that if you're married filing separately).
If you're single or head of household, the phaseout range is $ 80,000 to $ 90,000.
If your modified adjusted gross income falls within the phaseout range you can still contribute to a Roth but at a reduced amount.
Although the maximum deduction amount is not indexed to change with price levels, the income thresholds for the phaseout ranges are indexed.
For other taxpayers, the phaseout range is $ 78,150 to $ 93,150.
In 2018, the phaseout ranges are $ 119,550 to $ 149,550 for couples and $ 79,700 to $ 94,700 for everybody else.
But if her employer offers a 401 (k), she could make contributions to bring her modified adjusted gross income (MAGI) down into or below the phaseout range.
If taxpayers are close to a phaseout range of a tax benefit they're otherwise eligible for, they could try to lower their adjusted gross income (AGI) so they can claim the tax benefit.
If taxpayers are close to a phaseout range of a tax benefit they're otherwise eligible for, they could try to lower their adjusted gross income (AGI) so they can claim the tax benefit, for example by contributing as much as possible to a pre-tax retirement plan, such as a 401 (k) or 403 (b) or a deductible IRA.
Contributing $ 18,000 would bring her below the phaseout range entirely and allow her to deduct all $ 2,500 in student loan interest and $ 4,000 in tuition and fees for a total tax savings of $ 6,130.
Not only could that mean they fall into a higher tax bracket, but it may push them past the phaseout range for tax benefits they usually rely on,» said Perlman.