Eggert Financial Management, Inc.

Cultivating Wealth, Shaping Legacies
Bill Eggert, CFP®, NSSA®
President
7200 S. Alton Way
Suite A-210
Centennial, CO 80112
303-414-0400
info@eggertfinancial.net
www.eggertfinancial.net

February 24, 2020

2020 Key Numbers
 

Education Planning

American Opportunity and Lifetime Learning Credits

Education credits20192020
Maximum American Opportunity credit$2,500$2,500
Maximum Lifetime Learning credit$2,000$2,000
MAGI phaseout range for American Opportunity credit20192020
Single--phaseout threshold amount$80,000$80,000
Single--completed phaseout amount after$90,000$90,000
Married filing jointly--phaseout threshold amount$160,000$160,000
Married filing jointly--completed phaseout amount after$180,000$180,000
MAGI phaseout range for Lifetime Learning credit20192020
Single--phaseout threshold amount$58,000 $59,000
Single--completed phaseout amount after$68,000$69,000
Married filing jointly--phaseout threshold amount$116,000$118,000
Married filing jointly--completed phaseout amount after$136,000$138,000

Coverdell education savings accounts

Coverdell ESAs20192020
Annual contribution limit$2,000$2,000
MAGI phaseout range for Coverdell education savings accounts20192020
Single--phaseout threshold amount$95,000$95,000
Single--completed phaseout amount after$110,000$110,000
Married filing jointly--phaseout threshold amount$190,000$190,000
Married filing jointly--completed phaseout threshold amount$220,000$220,000

Deduction for qualified higher education expenses

Higher education expenses20192020
Maximum deduction$4,000$4,000
MAGI maximum for full $4,000 deduction20192020
Single$65,000$65,000
Married filing jointly$130,000$130,000
MAGI range for $2,000 deduction20192020
Single--MAGI greater than this amount:$65,000$65,000
Single--MAGI does not exceed this amount:$80,000$80,000
Married filing jointly--MAGI greater than this amount:$130,000$130,000
Married filing jointly--MAGI does not exceed this amount:$160,000$160,000

Deduction for student loan interest

Education loan interest deduction20192020
Maximum deduction for interest paid on qualified education loans$2,500$2,500
MAGI phaseout range20192020
Single--phaseout threshold amount$70,000 $70,000
Single--completed phaseout amount after$85,000$85,000
Married filing jointly--phaseout threshold amount$140,000 $140,000
Married filing jointly--completed phaseout amount after$170,000$170,000

Gift tax exclusion

Gift tax20192020
Annual gift tax exclusion--single individual$15,000 $15,000
Annual gift tax exclusion--joint gift$30,000$30,000
Lump-sum gift to 529 plan--single individual$75,000$75,000
Lump-sum gift to 529 plan--joint gift$150,000$150,000

Kiddie tax

Kiddie tax20192020
Children's unearned income over this amount generally taxed at parents' tax rates1$2,200$2,200
1 Taxed at parents' tax rates in 2020. In 2019, taxed at trust and estate income tax rates (special rules apply for alternative minimum tax purposes) but retroactive election may be made to tax at parents' tax rates.

U.S. savings bonds interest exclusion for college expenses

Joint returns20192020
Phaseout threshold for joint returns$121,600 $123,550
Completed phaseout amount after$151,600$153,550
Other returns20192020
Phaseout threshold for other returns$81,100 $82,350
Completed phaseout amount after$96,100$97,350
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Eggert Financial Management, Inc. is an Investment Advisory firm regulated by the State of Colorado.

 

Prepared by Broadridge Advisor Solutions Copyright 2020.