Itemized Deductions Reduced for Higher-Income Taxpayers

Most, but not all itemized deductions are subject to an overall reduction rule if AGI exceeds the annual threshold. Itemized deductions are reduced by 3% of the excess of AGI over the threshold.  If AGI is extremely high, the 3% reduction applies until 80% of itemized deductions are eliminated.
The reduction in itemized deductions cannot exceed 80%, there cannot be a complete phaseout of itemized deductions; a minimum of 20% is protected from this dis-allowance.

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