 |  | | | | | Education PlanningAmerican Opportunity and Lifetime Learning Credits
| Education credits | 2019 | 2020 |
|---|
| Maximum American Opportunity credit | $2,500 | $2,500 | | Maximum Lifetime Learning credit | $2,000 | $2,000 |
| MAGI phaseout range for American Opportunity credit | 2019 | 2020 |
|---|
| 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 credit | 2019 | 2020 |
|---|
| 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 ESAs | 2019 | 2020 |
|---|
| Annual contribution limit | $2,000 | $2,000 |
| MAGI phaseout range for Coverdell education savings accounts | 2019 | 2020 |
|---|
| 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 expenses | 2019 | 2020 |
|---|
| Maximum deduction | $4,000 | $4,000 |
| MAGI maximum for full $4,000 deduction | 2019 | 2020 |
|---|
| Single | $65,000 | $65,000 | | Married filing jointly | $130,000 | $130,000 |
| MAGI range for $2,000 deduction | 2019 | 2020 |
|---|
| 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 deduction | 2019 | 2020 |
|---|
| Maximum deduction for interest paid on qualified education loans | $2,500 | $2,500 |
| MAGI phaseout range | 2019 | 2020 |
|---|
| 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 tax | 2019 | 2020 |
|---|
| 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 tax | 2019 | 2020 |
|---|
| 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 returns | 2019 | 2020 |
|---|
| Phaseout threshold for joint returns | $121,600
| $123,550 | | Completed phaseout amount after | $151,600 | $153,550 |
| Other returns | 2019 | 2020 |
|---|
| Phaseout threshold for other returns | $81,100
| $82,350 | | Completed phaseout amount after | $96,100 | $97,350 |
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| | | | | IMPORTANT DISCLOSURES Philippe E Berthoud and William E. Riquier offer Securities and Advisory Services through United Planners Financial Services, Member FINRA/SIPC. United Planners and The Retirement Financial Center are independent companies. Broadridge Investor Communication Solutions, Inc. does not provide investment, tax, legal, or retirement advice or recommendations. The information presented here is not specific to any individual's personal circumstances. To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law. Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances. These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable — we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.
This communication is strictly intended for individuals residing in the state(s) of AZ, CA, CO, CT, FL, GA, ME, MD, MA, MT, NV, NH, NJ, NY, VA and WA. No offers may be made or accepted from any resident outside the specific states referenced. | | Prepared by Broadridge Advisor Solutions Copyright 2020. |
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