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Marginal rates allow to analyze potential income/deduction from after-tax perspective. Relationship between brackets and level of income. ... If modified AGI above 65K then no deduction. MAGI: AGI determined without education elements and after applying ยงยง 86, 135, 137, 219, 469. Amt. of reduction = 2,500 x (1500)/1500 = 2,500. ................
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