“Is there any way to get around this? It impacted by refund by over $3000.00.”---->I guess you may try, to cut your AGI level, to maximize your contributions to your retirement plan,i.e., traditional IRA( if applicable).If you could put money into a deductible IRA you could still lower it, but your income MAY not allow you to do that. The other thing you can try is for you and your spouse( I am NOT sure if you file your return as MFJ/ MFS) to file separately. That way even though your AGI would be above the deduction threshold, yours might not be (or perhaps the other way around -- depends on the individual incomes). You would still get your dedcution. ( half of something is better than nothing, right??).