Exemption phaseout

Exemption phaseout,

Definition of Exemption phaseout:

  1. A formula in the U.S. tax code that reduces the value of exemptions and deductions that can be claimed by high-income taxpayers based on income thresholds and their filing status. The phaseout reduces the value of each exemption by 2% for each $2,500 of income that exceeds the income thresholds.

Meaning of Exemption phaseout & Exemption phaseout Definition