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 credits20232024
Maximum American Opportunity credit$2,500$2,500
Maximum Lifetime Learning credit$2,000$2,000
MAGI phaseout range for American Opportunity credit20232024
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 credit20232024
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 ESAs20232024
Annual contribution limit$2,000$2,000
MAGI phaseout range for Coverdell education savings accounts20232024
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 expenses20232024
Maximum deductionN/AN/A
MAGI maximum for full $4,000 deduction20232024
SingleN/AN/A
Married filing jointlyN/AN/A
MAGI range for $2,000 deduction20232024
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 deduction20232024
Maximum deduction for interest paid on qualified education loans$2,500$2,500
MAGI phaseout range20232024
Single--phaseout threshold amount$75,000 $80,000
Single--completed phaseout amount after$90,000$95,000
Married filing jointly--phaseout threshold amount$155,000 $165,000
Married filing jointly--completed phaseout amount after$185,000$195,000

Gift tax exclusion

Gift tax20232024
Annual gift tax exclusion--single individual$17,000 $18,000
Annual gift tax exclusion--joint gift$34,000$36,000
Lump-sum gift to 529 plan--single individual$85,000$90,000
Lump-sum gift to 529 plan--joint gift$170,000$180,000

Kiddie tax

Kiddie tax20232024
Children's unearned income over this amount generally taxed at parents' tax rates$2,500$2,600

U.S. savings bonds interest exclusion for college expenses

Joint returns20232024
Phaseout threshold for joint returns$137,800$145,200
Completed phaseout amount after$167,800$175,200
Other returns20232024
Phaseout threshold for other returns$91,850$96,800
Completed phaseout amount after$106,850$111,800
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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.

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