Limits based on modified adjusted gross income
(A) Dollar limit
(A)Dollar limit#
The amount determined under paragraph (2) for any taxable year shall not exceed an amount equal to the amount determined under paragraph (2)(A) for such taxable year, reduced (but not below zero) by the amount which bears the same ratio to such amount as—
(i) the excess of— (I) the taxpayer’s adjusted gross income for such taxable year, over (II) the applicable dollar amount, bears to
(ii) $15,000 ($10,000 in the case of a joint return or a married individual filing a separate return).
The rules of subparagraphs (B) and (C) of section 219(g)(2) shall apply to any reduction under this subparagraph.
(A)(i)#
the excess of—
(I) the taxpayer’s adjusted gross income for such taxable year, over
(II) the applicable dollar amount, bears to
(A)(i)(I)#
the taxpayer’s adjusted gross income for such taxable year, over
(A)(i)(II)#
the applicable dollar amount, bears to
(B)Definitions#
For purposes of this paragraph—
(i) adjusted gross income shall be determined in the same manner as under section 219(g)(3), except that any amount included in gross income under subsection (d)(3) shall not be taken into account, and
(ii) the applicable dollar amount is— (I) in the case of a taxpayer filing a joint return, $150,000, (II) in the case of any other taxpayer (other than a married individual filing a separate return), $95,000, and (III) in the case of a married individual filing a separate return, zero.
(B)(i)#
adjusted gross income shall be determined in the same manner as under section 219(g)(3), except that any amount included in gross income under subsection (d)(3) shall not be taken into account, and
(B)(ii)#
the applicable dollar amount is—
(I) in the case of a taxpayer filing a joint return, $150,000,
(II) in the case of any other taxpayer (other than a married individual filing a separate return), $95,000, and
(III) in the case of a married individual filing a separate return, zero.
(B)(ii)(I)#
(C)Marital status#
Section 219(g)(4) shall apply for purposes of this paragraph.
(D)Inflation adjustment#
In the case of any taxable year beginning in a calendar year after 2006, the dollar amounts in subclauses (I) and (II) of subparagraph (B)(ii) shall each be increased by an amount equal to—
(i) such dollar amount, multiplied by
(ii) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting “calendar year 2005” for “calendar year 2016” in subparagraph (A)(ii) thereof.
Any increase determined under the preceding sentence shall be rounded to the nearest multiple of $1,000.
(D)(i)#
such dollar amount, multiplied by
(D)(ii)#
the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting “calendar year 2005” for “calendar year 2016” in subparagraph (A)(ii) thereof.
(E)Special rule for certain transfers from qualified tuition programs#
The amount determined under subparagraph (A) shall be increased by the lesser of—
(i) the amount of contributions described in section 529(c)(3)(E) for the taxable year, or
(ii) the amount of the reduction determined under such subparagraph (determined without regard to this subparagraph).
(E)(i)#
the amount of contributions described in section 529(c)(3)(E) for the taxable year, or
(E)(ii)#
the amount of the reduction determined under such subparagraph (determined without regard to this subparagraph).