Pease Values for 2008

In 2008, the threshold for phasing out itemized deductions begins at $159,950 ($79,975 for married couples filing separately) and the reduction cannot exceed one-third of a taxpayer’s allowed deductions. Pease will thus effectively reduce itemized deductions by 1 percent of the excess of AGI over the threshold. And because of the way the reduction is calculated, it can be no more than 26 2/3 percent (1/3 of 80 percent). Because the reduction is in dollars, the end of the phaseout depends on a taxpayer’s total itemized deductions.

• Distribution by dollar income category of benefits in 2006 of phasing out Pease and PEP
• Distribution by income percentile of benefits in 2006 of phasing out Pease and PEP