In 2014, for a married couple:
- Itemized deductions and personal exemptions begin to phase out at $305,050.
- The highest tax bracket of 39.6% begins at $457,601.
- The American Opportunity Credit disappears at income levels of $180,000 along with the Lifetime Learning Credit at $128,000 and the Child Tax Credit at $110,000.
- Additional Medicare Tax of .9% and the Net Investment Income Tax of 3.8% kick in at $250,000.
You can see how your tax bill can quickly grow.