Beginning in tax year 2025, taxpayers with a Federal Adjusted Gross Income (AGI) more than $200,000 (or $100,000 if married filing separately) must reduce the amount of their otherwise allowable itemized deductions by an amount equal to 7.5 percent of the Federal AGI that is more than $200,000 ($100,000 if married filing separately).

Thus, when a taxpayer’s Federal AGI is above the itemized deduction phase out, the “breakeven” point is the amount of itemized deductions at which the phase-out reduction pushes the net itemized amount to or below the standard deduction.

When the itemized deductions are subject to phaseout, MDWK14A is produced in View/Print mode. The result flows to Form 502, page 2, line 17c.

The following charts from the Maryland Comptroller show how Maryland itemized deductions would be reduced for taxpayers at various FAGI thresholds along with the corresponding breakeven point for each filing status. See the MD Tax Alert for more examples.

Married Filing Separately

Federal AGI	Reduction	“Breakeven” Amount
$100,000	$0	N/A
$200,000	$7,500	$10,850
$250,000	$11,250	$14,600
$275,000	$13,125	$16,475
$400,000	$22,500	$25,850

Single or Dependent

Federal AGI	Reduction	“Breakeven” Amount
$100,000	$0	N/A
$200,000	$0	N/A
$250,000	$3,750	$7,100
$275,000	$5,625	$8,975
$400,000	$15,000	$18,350

Married Filing Jointly or Head of Household

Federal AGI	Reduction	“Breakeven” Amount
$100,000	$0	N/A
$200,000	$0	N/A
$250,000	$3,750	$10,450
$275,000	$5,625	$12,325
$400,000	$15,000	$21,700