Fact vs. Fiction
Financial Planning Tips Are You Subject to the Pease Limitation? With tax day fast approaching, it's important to be aware of certain limitations that may affect your tax liability. Do you know what the income threshold is for married couples filing jointly who wish to itemize their deductions (i.e., the Pease limitation)?
Answer: C. The Pease limitation was reintroduced to the Internal Revenue Code by the American Taxpayer Relief Act of 2012. It reduces itemized deductions by the lesser of 3 percent of the amount by which the taxpayer's adjusted gross income exceeds the income threshold, or 80 percent of the amount of the itemized deductions otherwise allowable for the tax year. For married couples filing jointly, the threshold is $311,300 in 2016. If you have questions about how you might reduce the impact of the Pease limitation in future tax years, contact us today. | Fact vs. Fiction We understand that it can be tricky navigating through the world of financial services. Everyone seems to have an opinion' and it can become difficult knowing what to believe. We've created this series' "Financial Fact vs. Fiction'" as a way to present and debunk some of the most popular financial myths. Fiction: "Going green" for banking and bill payment will put me at high risk for identity theft. Fact: Tales of phishing scams and Internet security breaches make us all concerned about the safety of our online accounts. But according to a report from Javelin Strategy & Research, most people overestimate the risk of online fraud. For instance, about 90 percent of identity theft cases begin offline—with acquaintances or family members who steal victims' bank statements or passwords. Nevertheless, the public's perception of increased risk has not gone unnoticed by the financial industry. As a result, most banks and other financial institutions have installed the highest level of data protection allowed by law. View the Fact vs. Fiction Archive Last Updated: 4/19/2016
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