Education Planning

Coverdell ESAs20162017
Annual contribution limit$2,000$2,000
MAGI phaseout range for Coverdell education savings accounts20162017
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 expenses20162017
Maximum deduction$4,000N/A
MAGI maximum for full $4,000 deduction20162017
Single$65,000N/A
Married filing jointly$130,000N/A
Reduced deduction20162017
Reduced deduction available$2,000
MAGI range for $2,000 deduction20162017
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

Education loans–interest deduction

Education loan interest deduction20162016
Maximum deduction for interest paid on qualified education loans$2,500$2,500
MAGI phaseout range20162017
Single–phaseout threshold amount$65,000$65,000
Single–completed phaseout amount after$80,000$80,000
Married filing jointly–phaseout threshold amount$130,000$135,000
Married filing jointly–completed phaseout amount after$160,000$165,000

Gift tax exclusion

Gift tax20162017
Annual gift tax exclusion–single individual$14,000$14,000
Annual gift tax exclusion–joint gift$28,000$28,000
Lump-sum gift to 529 plan–single individual$70,000$70,000
Lump-sum gift to 529 plan–joint gift$140,000$140,000

Kiddie tax

Kiddie tax20162017
Generally, children pay federal income tax at their parents’ rate on any investment income over$2,100$2,100

American Opportunity and Lifetime Learning Credits

Education credits20162017
Maximum Lifetime Learning credit$2,000$2,000
Maximum American Opportunity credit$2,500$2,500
MAGI phaseout range for Lifetime Learning credit20162017
Single–phaseout threshold amount$55,000$56,000
Single–completed phaseout amount after$65,000$66,000
Married filing jointly–phaseout threshold amount$111,000$112,000
Married filing jointly–completed phaseout amount after$131,000$132,000
MAGI phaseout range for American Opportunity credit20162017
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

U.S. savings bonds–interest exclusion for higher education expenses

Joint returns20162017
Phaseout threshold for joint returns$116,300$117,250
Completed phaseout amount after$146,300$147,250
Other returns20162017
Phaseout threshold for other returns$77,550$78,150
Completed phaseout amount after$92,550$93,150

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IMPORTANT DISCLOSURES

Broadridge Investor Communication Solutions, Inc. does not provide investment, tax, or legal advice. 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 and legal 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 PA. No offers may be made or accepted from any resident outside the specific states referenced.

Prepared by Broadridge Investor Communication Solutions, Inc. Copyright 2017.