Itemized deductions can be limited when a taxpayer’s adjusted gross income is more than $305,050 if married filing jointly or qualifying widow(er), $279,650 if head of household, $254,200 if single or $152,525 if married filing separately (2014).

Adjusted gross income is all income minus any adjustments and appears on the final line of first page of the 1040 (line 38) or 1040A (line 21). Adjustments may consists of moving expenses, contributions to an IRA, alimony paid, educator expenses, student loan interest, tuition and fees, deductible part of self-employment, health savings account, self-employed health insurance, penalty on early withdrawal, and a few other deductions.

What the final number that appears on Line 38 for the 1040 or Line 21 of the 1040A is the adjusted gross income that determines if deductions will be limited.

The following Schedule A (Form 1040) deductions are subject to the overall limit on itemized deductions.

• Taxes paid–line 9

• Interest paid*–lines 10, 11, and 12

• Gifts to charity–line 19

• Job expenses and certain miscellaneous deductions–line 27

• Other miscellaneous deductions–line 28, excluding gambling and casualty or theft losses.

• You are subject to the limit on certain itemized deductions if your adjusted gross income (AGI) is more than $305,050 if married filing jointly or qualifying widow(er), $279,650 if head of household, $254,200 if single, or $152,525 if married filing separately. Your AGI is the amount on Form 1040, line 38.

In addition to itemized deductions exemptions may also be limited when income reaches the higher levels.

Tracy Bunner is an enrolled agent and tax preparer with an office in Harrisville. She can be reached at 801-686-1995 or at tracy.bunner@hrblock.com.