§ 68. Overall limitation on itemized deductions

Legislative history

Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.

1. 1990

   Revenue Reconciliation Act of 1990

   Pub. L. 101–508 title XI § 11103(a) · 104 Stat. 1388

   Enacted · 26 U.S.C. § 68

   Added Pub. L. 101–508, title XI, § 11103(a), Nov. 5, 1990, 104 Stat. 1388–406

   Source evidence

   Code source credit
   Added Pub. L. 101–508, title XI, § 11103(a), Nov. 5, 1990, 104 Stat. 1388–406

   Enacted provision · exact public law section
   SEC. 11103. OVERALL LIMITATION ON ITEMIZED DEDUCTIONS. (a) In General.— Part I of subchapter B of chapter 1 is amended by adding at the end thereof the following new section: “SEC. 68. OVERALL LIMITATION ON ITEMIZED DEDUCTIONS. “(a) General Rule.— In the case of an individual whose adjusted gross income exceeds the applicable amount, the amount of the itemized deductions otherwise allowable for the taxable year shall be reduced by the lesser of— “(1) 3 percent of the excess of adjusted gross income over the applicable amount, or “(2) 80 percent of the amount of the itemized deductions otherwise allowable for such taxable year. “(b) Applicable Amount.— “(1) In general.— For purposes of this section, the term ‘applicable amount’ means $100,000 ($50,000 in the case of a separate return by a married individual within the meaning of section 7703). “(2) Inflation adjustments.— In the case of any taxable year beginning in a calendar year after 1991, each dollar amount contained in paragraph (1) shall be increased by an amount equal to— “(A) such dollar amount, multiplied by “(B) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, by substituting ‘calendar year 1990’ for ‘calendar year 1989’ in subparagraph (B) thereof.” “(c) Exception for Certain Itemized Deductions.— For purposes of this section, the term ‘itemized deductions’ does not include— “(1) the deduction under section 213 (relating to medical, etc, expenses), “(2) any deduction for investment interest (as defined in section 163(d)), and “(3) the deduction under section 165(a) for losses described in subsection (c)(3) or (d) of section 165. “(d) Coordination With Other Limitations.— This section shall be applied after the application of any other limitation on the allowance of any itemized deduction. “(e) Exception for Estates and Trusts.— This section shall not apply to any estate or trust. “(f) Termination.— This section shall not apply to any taxable year beginning after December 31, 1995.” (b) Coordination With Minimum Tax.— Paragraph (1) of section 56(b) is amended by adding at the end thereof the following new subparagraph: “(F) Section 68 not applicable.— Section 68 shall not apply.” (c) Conforming Amendment.— Subparagraph (A) of section 1(f)(6) is amended by inserting “section 68(b)(2)” after “section 63(c)(4),”. (d) Clerical Amendment.— The table of sections for part I of subchapter B of chapter 1 is amended by adding a7777 So in original. Probably should be “at”. the end thereof the following new item: “Sec. 68. Overall limitation on itemized deductions.” (e) Effective Date.— The amendments made by this section shall 26 USC 1 note. apply to taxable years beginning after December 31, 1990.

2. 1993

   Revenue Reconciliation Act of 1993

   Pub. L. 103–66 § 13201(b)(3)(E) · 107 Stat. 312

   Substituted · 26 U.S.C. § 68(b)(2)(B)

   Pub. L. 103–66, § 13201(b)(3)(E), substituted “1992” for “1989”

   Source evidence

   Code amendment note
   Subsec. (b)(2)(B). Pub. L. 103–66, § 13201(b)(3)(E), substituted “1992” for “1989”.

   Enacted provision · exact public law section
   (E) Subparagraph (B) of section 68(b)(2) is amended by striking “1989” and inserting “1992”.

3. 1993

   Revenue Reconciliation Act of 1993

   Pub. L. 103–66 § 13204 · 107 Stat. 312

   Struck · 26 U.S.C. § 68(f)

   Pub. L. 103–66, § 13204, struck out heading and text of subsec. (f). Text read as follows: “This section shall not apply to any taxable year beginning after December 31, 1995.”

   Source evidence

   Code amendment note
   Subsec. (f). Pub. L. 103–66, § 13204, struck out heading and text of subsec. (f). Text read as follows: “This section shall not apply to any taxable year beginning after December 31, 1995.”

   Enacted provision · exact public law section
   SEC. 13204. OVERALL LIMITATION ON ITEMIZED DEDUCTIONS FOR HIGH-INCOME TAXPAYERS MADE PERMANENT. Subsection (f) of section 68 (relating to overall limitation on itemized deductions) is hereby repealed.

4. 1998

   Pub. L. 105–277 div. J title IV § 4004(b)(2) · 112 Stat. 2681

   Substituted · 26 U.S.C. § 68(c)(3)

   Pub. L. 105–277 substituted “for casualty or theft losses described in paragraph (2) or (3) of section 165(c) or for losses described in section 165(d)” for “for losses described in subsection (c)(3) or (d) of section 165”

   Source evidence

   Code amendment note
   Subsec. (c)(3). Pub. L. 105–277 substituted “for casualty or theft losses described in paragraph (2) or (3) of section 165(c) or for losses described in section 165(d)” for “for losses described in subsection (c)(3) or (d) of section 165”.

   Enacted provision · exact public law section
   (2) Paragraph (3) of section 68(c) of the 1986 Code is amended by striking “for losses described in subsection (c)(3) or (d) of section 165” and inserting “for casualty or theft losses described in paragraph (2) or (3) of section 165(c) or for losses described in section 165(d)”.

5. 2001

   Pub. L. 107–16 title I § 103(a) · 115 Stat. 38

   Added · 26 U.S.C. § 68(f); 26 U.S.C. § 68(g)

   Pub. L. 107–16 added subsecs. (f) and (g)

   Source evidence

   Code amendment note
   Subsecs. (f), (g). Pub. L. 107–16 added subsecs. (f) and (g).

   Enacted provision · exact public law section
   (a) In General.— Section 68 is amended by adding at the end the following new subsections: “(f) Phaseout of Limitation.— “(1) In general.— In the case of taxable years beginning after December 31, 2005, and before January 1, 2010, the reduction under subsection (a) shall be equal to the applicable fraction of the amount which would (but for this subsection) be the amount of such reduction. “(2) Applicable fraction.— For purposes of paragraph (1), the applicable fraction shall be determined in accordance with the following table: “For taxable years beginning in calendar year— The applicable fraction is— 2006 and 2007 ⅔ 2008 and 2009 ⅓. “(g) Termination.— This section shall not apply to any taxable year beginning after December 31,2009.”.

6. 2013

   American Taxpayer Relief Act of 2012

   Pub. L. 112–240 § 101(b)(2)(A)(i) · 126 Stat. 2313

   1. Added · 26 U.S.C. § 68(b)

      Pub. L. 112–240, § 101(b)(2)(A)(i), added subsec. (b)

   2. Struck · 26 U.S.C. § 68(b)

      Pub. L. 112–240, § 101(b)(2)(A)(i), struck out former subsec. (b). Prior to amendment, text read as follows:

   Source evidence

   Code amendment note
   Subsec. (b). Pub. L. 112–240, § 101(b)(2)(A)(i), added subsec. (b) and struck out former subsec. (b). Prior to amendment, text read as follows:

   “(1) In general.—For purposes of this section, the term ‘applicable amount’ means $100,000 ($50,000 in the case of a separate return by a married individual within the meaning of section 7703). “(2) Inflation adjustments.—In the case of any taxable year beginning in a calendar year after 1991, each dollar amount contained in paragraph (1) shall be increased by an amount equal to— “(A) such dollar amount, multiplied by “(B) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, by substituting ‘calendar year 1990’ for ‘calendar year 1992’ in subparagraph (B) thereof.”

   Enacted provision · exact public law section
   (i) by striking subsection (b) and inserting the following: “(b) Applicable Amount.— “(1) In general.— For purposes of this section, the term ‘applicable amount’ means— “(A) $300,000 in the case of a joint return or a surviving spouse (as defined in section 2(a)), “(B) $275,000 in the case of a head of household (as defined in section 2(b)), “(C) $250,000 in the case of an individual who is not married and who is not a surviving spouse or head of household, and “(D) ½ the amount applicable under subparagraph (A) (after adjustment, if any, under paragraph (2)) in the case of a married individual filing a separate return. For purposes of this paragraph, marital status shall be determined under section 7703. “(2) Inflation adjustment.— In the case of any taxable year beginning in calendar years after 2013, each of the dollar amounts under subparagraphs (A), (B), and (C) of paragraph (1) shall be shall be increased by an amount equal to— “(A) such dollar amount, multiplied by “(B) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, except that section 1(f)(3)(B) shall be applied by substituting ‘2012’ for ‘1992’. If any amount after adjustment under the preceding sentence is not a multiple of $50, such amount shall be rounded to the next lowest multiple of $50.”, and

7. 2013

   American Taxpayer Relief Act of 2012

   Pub. L. 112–240 § 101(b)(2)(A)(ii) · 126 Stat. 2313

   Struck · 26 U.S.C. § 68(f); 26 U.S.C. § 68(g)

   Pub. L. 112–240, § 101(b)(2)(A)(ii), struck out subsecs. (f) and (g), which related to phaseout of limitation and termination of applicability of section, respectively

   Source evidence

   Code amendment note
   Subsecs. (f), (g). Pub. L. 112–240, § 101(b)(2)(A)(ii), struck out subsecs. (f) and (g), which related to phaseout of limitation and termination of applicability of section, respectively.

   Enacted provision · exact public law section
   (ii) by striking subsections (f) and (g).

8. 2017

   Pub. L. 115–97 § 11002(d)(2) · 131 Stat. 2054

   1. Substituted · 26 U.S.C. § 68(b)(2)(B)

      Pub. L. 115–97, § 11002(d)(2), substituted “1(f)(3)(A)(ii)” for “1(f)(3)(B)”

   2. Substituted · 26 U.S.C. § 68(b)(2)(B)

      Pub. L. 115–97, § 11002(d)(2), substituted “2016” for “1992”

   Source evidence

   Code amendment note
   Subsec. (b)(2)(B). Pub. L. 115–97, § 11002(d)(2), substituted “1(f)(3)(A)(ii)” for “1(f)(3)(B)” and “2016” for “1992”.

   Enacted provision · exact public law section
   (2) Sections 41(e)(5)(C)(ii) and 68(b)(2)(B) are each amended— (A) by striking “1(f)(3)(B)” and inserting “1(f)(3)(A)(ii)”, and (B) by striking “1992” and inserting “2016”.

9. 2017

   Pub. L. 115–97 § 11046(a) · 131 Stat. 2054

   Added · 26 U.S.C. § 68(f)

   Pub. L. 115–97, § 11046(a), added subsec. (f)

   Source evidence

   Code amendment note
   Subsec. (f). Pub. L. 115–97, § 11046(a), added subsec. (f).

   Enacted provision · exact public law section
   (a) In General.— Section 68 is amended by adding at the end the following new subsection: “(f) Section Not to Apply.— This section shall not apply to any taxable year beginning after December 31, 2017, and before January 1, 2026.” .

10. 2018

    Energy and Water Development and Related Agencies Appropriations Act, 2018

    Pub. L. 115–141 div. U title IV § 401(a)(33) · 132 Stat. 348

    Substituted · 26 U.S.C. § 68(b)(2)

    Pub. L. 115–141 substituted “shall be” for “shall be shall be” in introductory provisions

    Source evidence

    Code amendment note
    Subsec. (b)(2). Pub. L. 115–141 substituted “shall be” for “shall be shall be” in introductory provisions.

    Enacted provision · exact public law section
    Sec. 401. The Nuclear Regulatory Commission shall comply with the July 5, 2011, version of Chapter VI of its Internal Commission Procedures when responding to Congressional requests for information.

11. 2025

    Pub. L. 119–21 title VII § 70111(a) · 139 Stat. 164

    Amended · 26 U.S.C. § 68

    Pub. L. 119–21 amended section generally. Prior to amendment, section consisted of subsecs. (a) to (f) relating, respectively, to general rule, applicable amount, exception for certain itemized deductions, coordination with other limitations, exception for estates and trusts, and this section not applying to any taxable year beginning after Dec. 31, 2017, and before Jan. 1, 2026

    Unresolved: Pub. L. 119–21 was not found in the local Statutes at Large index.

    Source evidence

    Code amendment note
    Pub. L. 119–21 amended section generally. Prior to amendment, section consisted of subsecs. (a) to (f) relating, respectively, to general rule, applicable amount, exception for certain itemized deductions, coordination with other limitations, exception for estates and trusts, and this section not applying to any taxable year beginning after Dec. 31, 2017, and before Jan. 1, 2026.

    Effective date note
    Pub. L. 119–21, title VII, § 70111(c), July 4, 2025, 139 Stat. 165, provided that: “The amendments made by this section [amending this section and section 199A of this title] shall apply to taxable years beginning after December 31, 2025.”

12 of 13 references resolved to an enrolled provision · 1 unresolved