Honu Wealth Management
Garth A Williams, MBA, CFP®
Financial Advisor
1307 S Mary Ave, Suite 101
Sunnyvale, CA 94087

2021 Key Numbers


Education Planning

American Opportunity and Lifetime Learning Credits

Education credits20202021
Maximum American Opportunity credit$2,500$2,500
Maximum Lifetime Learning credit$2,000$2,000
MAGI phaseout range for American Opportunity credit20202021
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 credit20202021
Single--phaseout threshold amount$59,000$80,000
Single--completed phaseout amount after$69,000$90,000
Married filing jointly--phaseout threshold amount$118,000$160,000
Married filing jointly--completed phaseout amount after$138,000$180,000

Coverdell education savings accounts

Coverdell ESAs20202021
Annual contribution limit$2,000$2,000
MAGI phaseout range for Coverdell education savings accounts20202021
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 expenses20202021
Maximum deduction$4,000N/A
MAGI maximum for full $4,000 deduction20202021
Married filing jointly$130,000N/A
MAGI range for $2,000 deduction20202021
Single--MAGI greater than this amount:$65,000N/A
Single--MAGI does not exceed this amount:$80,000N/A
Married filing jointly--MAGI greater than this amount:$130,000N/A
Married filing jointly--MAGI does not exceed this amount:$160,000N/A

Deduction for student loan interest

Education loan interest deduction20202021
Maximum deduction for interest paid on qualified education loans$2,500$2,500
MAGI phaseout range20202021
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 tax20202021
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 tax20202021
Children's unearned income over this amount generally taxed at parents' tax rates$2,200$2,200

U.S. savings bonds interest exclusion for college expenses

Joint returns20202021
Phaseout threshold for joint returns$123,550$124,800
Completed phaseout amount after$153,550$154,800
Other returns20202021
Phaseout threshold for other returns$82,350$83,200
Completed phaseout amount after$97,350$98,200

This information was developed by Forefield, Inc. an independent third party. It is general in nature, is not a complete statement of all information necessary for making an investment decision, and is not a recommendation or a solicitation to buy or sell any security. Investments and strategies mentioned may not be suitable for all investors. Past performance may not be indicative of future results.
Prepared by Broadridge Investor Communication Solutions, Inc. Copyright 2021.