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The deduction is fully allowed for singles with modified adjusted gross income ("MAGI") below $50,000 and partly allowed for singles with MAGI up to $65,000. Married couples filing jointly get the full deduction with MAGI up to $100,000 and a partial deduction with MAGI up to $130,000. MAGI is your income after certain adjustments (such as IRA contributions and alimony payments) but before claiming exemptions, the standard deduction, or itemized deductions. For most people, modified adjusted gross income is the same as AGI (not counting the deduction for student loan interest or for qualified tuition and related expenses), but AGI must be increased if you take advantage of certain exclusions for income earned abroad.
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