Pease Limitation calculator is here to make the life of taxpayers easy ! As you know the Pease limitation was added to the Internal Revenue Code under section 68 in the year 1991. This provision limits the amount of certain itemized deductions . The Pease limitation affects taxpayers who are in the 33% marginal table rates and above. In effect , this limitation on deduction actually garners more dollars for federal government from rich tax payer without raising tax rates for them.The reduction amount is the lesser of
- 3% of AGI over a threshold or
- by 80% of total deductions.
The calculation is based on the adjusted gross income (AGI) of the taxpayer . You can read what is pease limitation here
Pease limitation calculator
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