Dushyant Pandit
dpandit@dorchesteradvisors.com
 
 




2020 Key Numbers

 

Education Planning

American Opportunity and Lifetime Learning Credits

Education credits20192020
Maximum American Opportunity credit$2,500$2,500
Maximum Lifetime Learning credit$2,000$2,000
MAGI phaseout range for American Opportunity credit20192020
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 credit20192020
Single--phaseout threshold amount$58,000 $59,000
Single--completed phaseout amount after$68,000$69,000
Married filing jointly--phaseout threshold amount$116,000$118,000
Married filing jointly--completed phaseout amount after$136,000$138,000

Coverdell education savings accounts

Coverdell ESAs20192020
Annual contribution limit$2,000$2,000
MAGI phaseout range for Coverdell education savings accounts20192020
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 expenses20192020
Maximum deductionN/AN/A

Deduction for student loan interest

Education loan interest deduction20192020
Maximum deduction for interest paid on qualified education loans$2,500$2,500
MAGI phaseout range20192020
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 tax20192020
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 tax20192020
Generally, children pay federal income tax at the tax rates that apply to estates and trusts on any investment income over$2,200$2,200

U.S. savings bonds interest exclusion for college expenses

Joint returns20192020
Phaseout threshold for joint returns$121,600 $123,550
Completed phaseout amount after$151,600$153,550
Other returns20192020
Phaseout threshold for other returns$81,100 $82,350
Completed phaseout amount after$96,100$97,350


Dorchester Advisors is a Registered Investment Advisor in NJ and NY. This communication is strictly intended for individuals residing in the state(s) of NJ and NY. No offers may be made or accepted from any resident outside the specific states referenced.

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