The Retirement Financial Center

Philippe E. Berthoud
10 Liberty Street
Danvers, MA 01923
978-777-5000
peberthoud@unitedplanners.com
www.retirementctr.com

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July 27, 2020

2020 Key Numbers
 

Education Planning

American Opportunity and Lifetime Learning Credits

Education credits20242025
Maximum American Opportunity credit$2,500$2,500
Maximum Lifetime Learning credit$2,000$2,000
MAGI phaseout range for American Opportunity credit20242025
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 credit20242025
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

Coverdell education savings accounts

Coverdell ESAs20242025
Annual contribution limit$2,000$2,000
MAGI phaseout range for Coverdell education savings accounts20242025
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 expenses20242025
Maximum deductionN/AN/A
MAGI maximum for full $4,000 deduction20242025
SingleN/AN/A
Married filing jointlyN/AN/A
MAGI range for $2,000 deduction20242025
Single--MAGI greater than this amount:N/AN/A
Single--MAGI does not exceed this amount:N/AN/A
Married filing jointly--MAGI greater than this amount:N/AN/A
Married filing jointly--MAGI does not exceed this amount:N/AN/A

Deduction for student loan interest

Education loan interest deduction20242025
Maximum deduction for interest paid on qualified education loans$2,500$2,500
MAGI phaseout range20242025
Single--phaseout threshold amount80,000 $85,000
Single--completed phaseout amount after$95,000$100,000
Married filing jointly--phaseout threshold amount$165,000$170,000
Married filing jointly--completed phaseout amount after$195,000$200,000

Gift tax exclusion

Gift tax20242025
Annual gift tax exclusion--single individual$18,000 $19,000
Annual gift tax exclusion--joint gift$36,000$38,000
Lump-sum gift to 529 plan--single individual$90,000$95,000
Lump-sum gift to 529 plan--joint gift$180,000$190,000

Kiddie tax

Kiddie tax20242025
Children's unearned income over this amount generally taxed at parents' tax rates$2,600$2,700

U.S. savings bonds interest exclusion for college expenses

Joint returns20242025
Phaseout threshold for joint returns$145,200$149,250
Completed phaseout amount after$175,200$179,250
Other returns20242025
Phaseout threshold for other returns$96,800$99,500
Completed phaseout amount after$111,800$114,500
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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.



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