 |  | | | | | Education Planning
American Opportunity and Lifetime Learning Credits
| Education credits | 2024 | 2025 |
|---|
| Maximum American Opportunity credit | $2,500 | $2,500 | | Maximum Lifetime Learning credit | $2,000 | $2,000 |
| MAGI phaseout range for American Opportunity credit | 2024 | 2025 |
|---|
| 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 | 2024 | 2025 |
|---|
| 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 ESAs | 2024 | 2025 |
|---|
| Annual contribution limit | $2,000 | $2,000 |
| MAGI phaseout range for Coverdell education savings
accounts | 2024 | 2025 |
|---|
| 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 | 2024 | 2025 |
|---|
| Maximum deduction | N/A | N/A |
| MAGI maximum for full $4,000 deduction | 2024 | 2025 |
|---|
| Single | N/A | N/A | | Married filing
jointly | N/A | N/A |
| MAGI range for $2,000 deduction | 2024 | 2025 |
|---|
| Single--MAGI greater than this amount: | N/A | N/A | | Single--MAGI does not exceed this
amount: | N/A | N/A | | Married filing jointly--MAGI greater
than this amount: | N/A | N/A | | Married filing jointly--MAGI does not
exceed this amount: | N/A | N/A |
Deduction for student loan interest
| Education loan interest deduction | 2024 | 2025 |
|---|
| Maximum deduction for interest paid on qualified education
loans | $2,500 | $2,500 |
| MAGI phaseout range | 2024 | 2025 |
|---|
| Single--phaseout threshold amount | 80,000
| $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 tax | 2024 | 2025 |
|---|
| 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 tax | 2024 | 2025 |
|---|
| 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 returns | 2024 | 2025 |
|---|
| Phaseout threshold for joint returns | $145,200 | $149,250 | | Completed phaseout amount after | $175,200 | $179,250 |
| Other returns | 2024 | 2025 |
|---|
| Phaseout threshold for other returns | $96,800 | $99,500 | | Completed phaseout amount after | $111,800 | $114,500 |
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| | | | Advisory Services Offered Through PCA Investment Advisory Services, Inc.
Securities Offered Through L.M Kohn & Company 10151 Carver Road, Ste. 100., Cincinnati, OH 45242
Member FINRA/SIPC And a Registered Broker-Dealer not affiliated with PCA Investment Advisory Services, Inc. | | Prepared by Broadridge Advisor Solutions Copyright 2025. |
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