account of the individual for such taxable year. (c) Applicable percentage For purposes of this section— (1) In general Except as provided in paragraph (2), the applicable percentage is 100 percent. (2) Phaseout The percentage under paragraph (1) shall be reduced (but not below zero) by the number of percentage points which bears the same ratio to 100 percentage points as— (A) the excess of— (i) the taxpayer's modified adjusted gross income for such taxable year, over (ii) the applicable dollar amount, bears to (B) $20,000. If any reduction determined under this paragraph is not a whole percentage point, such reduction shall be rounded to the next lowest whole percentage point. (3) Applicable dollar amount The applicable dollar amount is— (A) in the case of a joint return, $56,000, (B) in the case of a head of household (as defined in section 2(b)), 3/4 of the amount applicable under subparagraph (A), and (C) in any other case, 1/2 of the amount applicable under subparagraph (A). (d) Qualified ABLE account contributions For purposes of this section— (1) In general The term qualified ABLE account contributions means, with respect to any taxable year, the amount of contributions made by the individual to the ABLE account of which such individual is the designated beneficiary. Such term shall not include any amount attributable to a payment under subsection (a)(2). (2) Reduction for certain distributions (A) In general The qualified ABLE account contributions determined under paragraph (1) for a taxable year shall be reduced (but not below zero) by the aggregate distributions received by the individual during the testing period from the ABLE account. (B) Testing period For purposes of subparagraph (A), the testing period, with respect to a taxable year, is the period which includes— (i) such taxable year, (ii) the 2 preceding taxable years, and (iii) the period after such taxable year and before the due date (including extensions) for filing the return of tax for such taxable year. (C) Excepted distributions There