Income limits Close
For some tax breaks, the IRS imposes a limit on how much income you can earn in a year. Usually, this is a range of income with a lower and upper limit. For purposes of defining income, modified adjusted gross income (MAGI) is generally used. When your income reaches the lower limit, your tax break is reduced, or begins to phase out. When your income reaches the upper limit, your tax break is eliminated, or is completely phased out.