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Under Section 68(a), a taxpayer whose adjusted gross income exceeds a threshold amount must reduce his or her itemized deductions by the lesser of 3% of that excess, or 80% of itemized deductions otherwise allowable. The threshold amount was initially $100,000 in 1990 when introduced by Donald J. Pease (D-13th District, OH), and has been modified over the years. The threshold is currently (under ATRA), $250,000 for single taxpayers and $300,000 for joint filers.

Synonyms: 3% Limitation, Pease Limitations
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3% Limitation, Pease Limitations