Phase Out

Filed Under » , ,
Dictionary Says

Definition of 'Phase Out'

1. The gradual reduction of a tax credit as a taxpayer approaches the income limit to qualify for that credit.

2. The gradual reduction of a taxpayer's eligibility to contribute to a tax-advantaged retirement account as the taxpayer approaches an income limit.
Investopedia Says

Investopedia explains 'Phase Out'

1. For example, the federal Child Tax Credit begins to phase out for married taxpayers filing jointly when their modified adjusted gross income (MAGI) reaches $110,000. If their MAGI falls below this number, they can claim the full credit. If it falls above this number, the credit is gradually reduced until the income limit is reached. Above that limit, the taxpayer cannot claim the Child Tax Credit.

2. In 2009, single taxpayers whose MAGI was more than $55,000 could not fully deduct contributions to a traditional IRA from their taxes. This tax credit phased out for MAGI between $55,000 and $65,000, meaning that contributions were only partly deductible. Single taxpayers with MAGI above $65,000 could not deduct their traditional IRA contributions from their taxes at all.
Search results for

'Phase Out'

  • Get Ready For The Estate Tax Phase-Out

    http://www.investopedia.com/articles/pf/05/EstateTaxPhaseOut.asp
    Get Ready For The Estate Tax Phase-Out. ... They may think that the phase-out of the
    federal estate tax means no taxes will be due when they die. ...

  • 8 Tax Cuts Set To Expire In 2011 - Investopedia.com

    http://financialedge.investopedia.com/financial-edge/1010/8-Tax-Cuts-Set-To-Expire-In-2011.aspx
    ... In 2010, this exemption does not phase out as the taxpayer's income increases, but
    as recently as 2009, the exemption began to phase out at "$125,100 for ...

  • China Says No To Incandescents

    http://stocks.investopedia.com/stock-analysis/2011/China-Says-No-To-Incandescents-CREE-LEDS-VECO-AIXG-RBCN-CS-PJC-GE-PHG1109.aspx
    China’s decision to phase-out incandescent bulbs is a huge win
    for the LED and energy efficient lighting industry. ...

  • Tax Credits And Deductions For Parents - Investopedia.com

    http://financialedge.investopedia.com/financial-edge/0310/Tax-Credits-And-Deductions-For-Parents.aspx
    ... Most of these credits and deductions phase out or get reduced over certain income
    levels, but these income levels are high enough to permit most Americans to ...

  • Series 65 Study Guide - Retirement Plans - Traditional Individual ...

    http://www.investopedia.com/exam-guide/series-65/retirement-plans/traditional-iras.asp
    ... Look Out! On the exam, you will not be tested on the actual dollar values
    for the phase-out. However, you will need to know that ...

  • Series 66 Study Guide - Special Issues for Retirement Plans ...

    http://www.investopedia.com/exam-guide/series-66/retirement-plans/traditional-ira.asp
    ... Advertisment - ExamPrep continues below. Exam Tips and Tricks On the exam, you will
    not be tested on the actual dollar values for the phase-out. ...

  • An Introduction To Roth IRAs

    http://www.investopedia.com/articles/retirement/04/091504.asp
    ... If you fall within the phase-out range, you may still find it in your best
    interests to seize the opportunity to fund the Roth IRA. ...

  • Traditional IRAs: Contributions | Investopedia

    http://www.investopedia.com/university/retirementplans/ira/ira2.asp
    ... Figuring the Deductible Amount Individuals whose incomes fall within the phase-out
    ranges can partially deduct contributions made to a Traditional IRA. ...

  • I didn't record my Traditional IRA contributions. Is there a ...

    http://www.investopedia.com/ask/answers/05/iralimits.asp
    Visit the Congressional Budget Office's Online Tax Guide, which summarizes IRA
    contribution limits and phase-out ranges for every year from 1974. ...

  • Series 6 Study Guide - Retirement and College Savings Plans - Roth ...

    http://www.investopedia.com/exam-guide/finra-series-6/retirement-college-savings-plans/roth-iras.asp
    ... individuals who are married and living with their spouse, but are filing separately,
    their AGI must be less than $10,000, with the phase out occurring between ...

Related Articles

Bank Rates
Product Today Last Wk
$10K MMA 0.50% 0.51%
MMA 0.45% 0.46%
6 Month CD 0.46% 0.47%
1 Year CD 0.70% 0.75%
5 Year CD 1.46% 1.46%
1 Year Jumbo CD 0.66% 0.67%
Rate data provided by Bankrate
Product Today Last Wk
$30K HELOC 4.59% 4.60%
$30K Home Equity Loan 5.74% 5.77%
$50K Home Equity Loan 5.45% 5.50%
$50K HELOC 4.24% 4.24%
$100K Home Equity Loan 5.41% 5.46%
$100K HELOC 4.13% 4.13%
Rate data provided by Bankrate
Product Today Last Wk
30 Year Fixed 3.80% 3.80%
15 Year Fixed 3.09% 3.11%
1 Year ARM 3.54% 3.53%
30 Year Fixed Jumbo 4.38% 4.38%
5/1 ARM 2.65% 2.69%
3/1 ARM 2.69% 2.69%
Rate data provided by Bankrate
Product Today Last Wk
60 Month Used Car Loan 4.51% 4.51%
48 Month Used Car Loan 4.35% 4.35%
48 Month New Car Loan 3.24% 3.24%
36 Month Used Car Loan 4.34% 4.36%
36 Month New Car Loan 3.11% 3.13%
60 Month New Car Loan 3.35% 3.34%
Rate data provided by Bankrate
Partner Links