Honu Wealth Management
Garth A Williams, MBA, CFP®
Financial Advisor
1307 S Mary Ave, Suite 101
Sunnyvale, CA 94087
650-917-3400
garth@honuwealth.com
www.HonuWealth.com
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2023 Key Numbers
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| | Education Planning
American Opportunity and Lifetime Learning Credits
| Education credits | 2022 | 2023 |
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| Maximum American Opportunity credit | $2,500 | $2,500 | | Maximum Lifetime Learning credit | $2,000 | $2,000 |
| MAGI phaseout range for American Opportunity credit | 2022 | 2023 |
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| 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 | 2022 | 2023 |
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| 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 | 2022 | 2023 |
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| Annual contribution limit | $2,000 | $2,000 |
| MAGI phaseout range for Coverdell education savings
accounts | 2022 | 2023 |
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| 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 | 2022 | 2023 |
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| Maximum deduction | N/A | N/A |
| MAGI maximum for full $4,000 deduction | 2022 | 2023 |
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| Single | N/A | N/A | | Married filing
jointly | N/A | N/A |
| MAGI range for $2,000 deduction | 2022 | 2023 |
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| 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 | 2022 | 2023 |
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| Maximum deduction for interest paid on qualified education
loans | $2,500 | $2,500 |
| MAGI phaseout range | 2022 | 2023 |
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| Single--phaseout threshold amount | $70,000
| $75,000
| | Single--completed phaseout amount after | $85,000 | $90,000 | | Married filing jointly--phaseout threshold amount | $145,000
| $155,000
| | Married filing jointly--completed phaseout amount after | $175,000 | $185,000 |
Gift tax exclusion
| Gift tax | 2022 | 2023 |
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| Annual gift tax exclusion--single individual | $16,000
| $17,000 | | Annual gift tax exclusion--joint gift | $32,000 | $34,000 | | Lump-sum gift to 529 plan--single individual | $80,000 | $85,000 | | Lump-sum gift to 529 plan--joint gift | $160,000 | $170,000 |
Kiddie tax
| Kiddie tax | 2022 | 2023 |
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| Children's unearned income over this amount generally taxed
at parents' tax rates | $2,300 | $2,500 |
U.S. savings bonds interest exclusion for college
expenses
| Joint returns | 2022 | 2023 |
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| Phaseout threshold for joint returns | $128,650 | $137,800 | | Completed phaseout amount after | $158,650 | $167,800 |
| Other returns | 2022 | 2023 |
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| Phaseout threshold for other returns | $85,800 | $91,850 | | Completed phaseout amount after | $100,800 | $106,850 |
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| 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.
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| Prepared by Broadridge Investor Communication Solutions, Inc. Copyright 2023. |
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