I notice a deduction of my rental loss even though its a passive loss which I don't qualify to deduct from my income. Why can I fix it?

[MinhT]

Is your Modified Adjusted Gross Income (MAGI) under $150,000?

[huihuang2]

Yes

[MinhT · Accepted solution]

Taxpayers whose modified adjusted gross income, or MAGI, is less than $100,000 can claim up to $25,000 in rental losses. The $25,000 cap is reduced $1 for every $2 a taxpayer's MAGI exceeds $100,000. For example, a MAGI of $110,000 exceeds $100,000 by $10,000 so the $25,000 limit is reduced to $20,000. The deduction of passive losses is completely phased out at $150,000 of MAGI.

[huihuang2]

Got it! Thanks.