Smedley Financial Services, Inc.®

Private Wealth Management Team Advisors
102 S. 200 E. Suite 100
PO Box 4133
Salt Lake City, UT 84110-4133

January 04, 2019

2019 Key Numbers

Education Planning

Coverdell education savings accounts

Coverdell ESAs20182019
Annual contribution limit$2,000$2,000
MAGI phaseout range for Coverdell education savings accounts20182019
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 expenses20182019
Maximum deductionN/AN/A
MAGI maximum for full $4,000 deduction20182019
Married filing jointlyN/AN/A
Reduced deduction20182019
Reduced deduction availableN/AN/A
MAGI range for $2,000 deduction20182019
Single--MAGI greater than this amount:N/AN/A
Single--MAGI does not exceed this amount:N/AN/A
Married filing jointly--MAGI greater than this amount:N/AN/A
Married filing jointly--MAGI does not exceed this amount:N/AN/A

Education loans--interest deduction

Education loan interest deduction20182019
Maximum deduction for interest paid on qualified education loans$2,500$2,500
MAGI phaseout range20182019
Single--phaseout threshold amount$65,000 $70,000
Single--completed phaseout amount after$80,000 $85,000
Married filing jointly--phaseout threshold amount$135,000 $140,000
Married filing jointly--completed phaseout amount after$165,000 $170,000

Gift tax exclusion

Gift tax20182019
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 tax20182019
Generally, children pay federal income tax at the tax rates that apply to estates and trusts on any investment income over$2,100$2,200

American Opportunity and Lifetime Learning Credits

Education credits20182019
Maximum Lifetime Learning credit$2,000$2,000
Maximum American Opportunity credit$2,500$2,500
MAGI phaseout range for Lifetime Learning credit20182019
Single--phaseout threshold amount$57,000 $58,000
Single--completed phaseout amount after$67,000$68,000
Married filing jointly--phaseout threshold amount$114,000$116,000
Married filing jointly--completed phaseout amount after$134,000$136,000
MAGI phaseout range for American Opportunity credit20182019
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 returns20182019
Phaseout threshold for joint returns$119,300 $121,600
Completed phaseout amount after149,300$151,600
Other returns20182019
Phaseout threshold for other returns$79,550 $81,100
Completed phaseout amount after$94,550$96,100
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Securities offered through Securities America, Inc., Member FINRA/SIPC. Roger M. Smedley,CFP®, Sharla J. Jessop, CFP®, James R. Derrick, CFA,  Mikal B. Aune, CFP®, Jordan R. Hadfield, Leah Nelson, and Shane P. Thomas, Registered Representatives and Registered Investment Advisor Representatives of Smedley Financial Services, Inc.® Smedley Financial Services, Inc.® and Securities America, Inc. are separate entities. Securities America and its representatives do not provide tax or legal advice. Please consult the appropriate professionals regarding your personal situation.

Prepared by Broadridge Investor Communication Solutions, Inc. Copyright 2019.