The deduction falls by $200 for each $1,000 of income above $100,000
What the document says“shall be reduced (but not below zero) by $200 for each $1,000 (or portion thereof) by which the modified adjusted gross income of the taxpayer for the taxable year exceeds $100,000 ($200,000 in the case of a joint return).”
The section reduces the deduction, after the cap and not below zero, by $200 for each $1,000 or part of $1,000 of modified adjusted gross income above $100,000, or $200,000 on a joint return. Modified adjusted gross income means adjusted gross income increased by any amount excluded under section 911, 931 or 933.
What the document actually says“shall be reduced (but not below zero) by $200 for each $1,000 (or portion thereof) by which the modified adjusted gross income of the taxpayer for the taxable year exceeds $100,000 ($200,000 in the case of a joint return).”
The deduction shrinks as income rises. It drops by $200 for each $1,000 over $100,000. On a joint return the line is $200,000. It never drops below zero.
Part of a thousand counts as a whole one. Income here counts some money earned abroad. A high enough income wipes the break out.
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