2. The gradual reduction of a taxpayer's eligibility to contribute to a tax-advantaged retirement account as the taxpayer approaches an income limit.
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. In2009, 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.
Investment dictionary. Academic. 2012.
Look at other dictionaries:
Phase out — (f[=a]z out ), v. t. To halt (an activity) in steps, or gradually; as, to phase out use of 386 based PC s. [PJC] … The Collaborative International Dictionary of English
phase out — (something) to gradually stop providing or using something. The city decided to phase out half day kindergarten for 4 year olds in the public schools. Opposite of: phase in (something) … New idioms dictionary
phase out — verb terminate gradually • Ant: ↑phase in • Hypernyms: ↑end, ↑terminate • Verb Frames: Somebody s something * * * [verb] wind down, close, ease off, eliminate, pull out, remove, run down, terminate, wind up, withdraw … Useful english dictionary
phase out — phrasal verb [transitive] Word forms phase out : present tense I/you/we/they phase out he/she/it phases out present participle phasing out past tense phased out past participle phased out to gradually stop using something Over the following three … English dictionary
phase·out — /ˈfeızˌaʊt/ noun, pl outs [count] US : the act of stopping something gradually over a period of time in a planned series of steps or phases usually singular The restaurant will continue its phaseout of many unhealthy menu items over the next two… … Useful english dictionary
phase out — verb Date: 1940 transitive verb to discontinue the practice, production, or use of by phases < phase out the old machinery > intransitive verb to stop production or operation by phases … New Collegiate Dictionary
Phase-out — Dieser Artikel oder Abschnitt ist nicht hinreichend mit Belegen (Literatur, Webseiten oder Einzelnachweisen) versehen. Die fraglichen Angaben werden daher möglicherweise demnächst gelöscht. Hilf Wikipedia, indem du die Angaben recherchierst und… … Deutsch Wikipedia
phase out — phr verb Phase out is used with these nouns as the object: ↑subsidy … Collocations dictionary
phase out — we re going to phase out the cash rebate program Syn: withdraw gradually, discontinue, stop using, run down, wind down … Thesaurus of popular words
phase-out — /ˈfeɪz aʊt/ (say fayz owt) noun a gradual, stage by stage elimination or withdrawal: *We understand a definitive announcement to clarify the analogue phase out is expected shortly from the minister. –aap news, 1996 … Australian English dictionary