Code Section 151
| Code Section | Effective Date | Name of Act | Name of Provision | 10yr Revenue Estimate ($millions) |
|---|---|---|---|---|
| 68, 151 | 12/31/2012 | The American Taxpayer Relief Act of 2012 | Overall limitation on itemized deductions and the phaseout of personal exemptions | -10,514 |
| 68, 151 | 12/31/2010 | The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 | The Overall Limitation on Itemized Deductions and the Personal Exemption Phase-Out | -20,735 |
Overall limitation on itemized deductions and the phaseout of personal exemptions
Explanation of Provision
Overall limitation on itemized deductions (‘‘Pease’’ limitation)
Under the Act, the ‘‘Pease’’ thresholds amounts are modified. The AGI thresholds for taxable years beginning in 2013 are (1) $250,000 for single individuals; (2) $300,000 for married couples filing joint returns and surviving spouses; (3) $275,000 for heads of households, and (4) $150,000 for a married individual filing a separate return. These amounts are indexed for inflation for taxable years beginning after 2013.
Personal exemption phase-out for certain taxpayers (‘‘PEP’’)
Under the Act, the PEP threshold amounts are modified, and are the same as the AGI thresholds for the ‘‘Pease’’ limitation.
The Overall Limitation on Itemized Deductions and the Personal Exemption Phase-Out
Explanation of Provision
Overall limitation on itemized deductions (‘‘Pease’’ limitation)
Under the provision the overall limitation on itemized deductions does not apply for two additional years (through 2012).
Personal exemption phase-out for certain taxpayers (‘‘PEP’’)
Under the provision the personal exemption phase-out does not apply for two additional years (through 2012).
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