it means that

the total itemized deduction is subject to 2 limitations:

1. if the AGI is above $150500 (it varies per filing status), the itemized deduction will be reduced by 3%t of the amount of AGI exceeding $150500{in ur case, it is 3%*(500000-150500)=10485}.

2. but the $10485 cannot be more than 80% applicable itemized deduction. The applicable itemized deduction equals to the total of taxes, interest, contributions,and miscellaneous itemized deductions. in ur case , teh applicable itemized deduction is $10000. then the limitation is 80%*10000=8000.

so the final itemized deduction should be $8000 not 10485.

所有跟帖： 

• yeah, it is easy to confuse people -88fanfan- ♀ (0 bytes) () 02/16/2009 postreply 05:52:53