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Not all deductions are affected by the phaseout of itemized deductions, but most of the larger ones are:
- home mortgage interest
- taxes
- charitable contributions
- miscellaneous itemized deductions that are subject to the 2 percent limit, including employee business expenses
- federal estate tax in respect of a decedent
- impairment-related work expenses
- amortizable bond premiums on bonds acquired before 10/23/86
- unrecovered investment in a pension
- repayments of income previously taxed
The following deductions are not subject to the phaseout:
- medical and dental expenses
- gambling losses
- investment interest expenses
- nonbusiness casualty and theft losses
Note that whatever limits are applicable to the particular type of deduction (for example, the $100,000 limit on home equity loans, or the two percent limit for miscellaneous deductions) are applied first, before computing the amount of the phaseout.
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