Yes, there is a limit which you haven't reached and which doesn't eliminate the advantage of deductions....
"Reduction in Itemized Deductions and Personal Exemptions for High-Income Taxpayers
Itemized deductions and personal exemptions are phased out as your income rises. In 2009, the reductions are a bit less painful than they were in 2008. The cutback in itemized deductions occurs once your Adjusted Gross Income exceeds $166,800, regardless of your filing status. Your itemized deductions are reduced by 1 percent of the amount by which your AGI exceeds $166,800, but you can never lose more than 80 percent of your itemized deductions. Also, your medical expenses, investment interest deduction, deductible gambling losses and any casualty and theft losses are not subject to the cut. Personal exemptions are reduced by 2 percent for each $2,500 of Adjusted Gross Income over $250,200 for married filing jointly, $208,500 for heads of households and $166,800 for singles, but the reduction cannot exceed $1,217 per exemption." |
