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