Mark Stevens, CFP®

2018 Key Numbers


Education Planning

Coverdell education savings accounts

Coverdell ESAs20172018
Annual contribution limit$2,000$2,000
MAGI phaseout range for Coverdell education savings accounts20172018
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 expenses20172018
Maximum deduction$4,000N/A
MAGI maximum for full $4,000 deduction20172018
Married filing jointly$130,000N/A
Reduced deduction20172018
Reduced deduction available$2,000N/A
MAGI range for $2,000 deduction20172018
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 deduction20172018
Maximum deduction for interest paid on qualified education loans$2,500$2,500
MAGI phaseout range20172018
Single--phaseout threshold amount$65,000 $65,000
Single--completed phaseout amount after$80,000 $80,000
Married filing jointly--phaseout threshold amount$135,000 $135,000
Married filing jointly--completed phaseout amount after$165,000 $165,000

Gift tax exclusion

Gift tax20172018
Annual gift tax exclusion--single individual$14,000$15,000
Annual gift tax exclusion--joint gift$28,000$30,000
Lump-sum gift to 529 plan--single individual$70,000$75,000
Lump-sum gift to 529 plan--joint gift$140,000$150,000

Kiddie tax

Kiddie tax20172018
Generally, children pay federal income tax at their parents' rate (for 2018, at the tax rates that apply to estates and trusts) on any investment income over$2,100$2,100

American Opportunity and Lifetime Learning Credits

Education credits20172018
Maximum Lifetime Learning credit$2,000$2,000
Maximum American Opportunity credit$2,500$2,500
MAGI phaseout range for Lifetime Learning credit20172018
Single--phaseout threshold amount$56,000 $57,000
Single--completed phaseout amount after$66,000 $67,000
Married filing jointly--phaseout threshold amount$112,000 $114,000
Married filing jointly--completed phaseout amount after$132,000 $134,000
MAGI phaseout range for American Opportunity credit20172018
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 returns20172018
Phaseout threshold for joint returns$117,250 $119,300
Completed phaseout amount after$147,250 149,300
Other returns20172018
Phaseout threshold for other returns$78,150 $79,550
Completed phaseout amount after$93,150 $94,550

This communication is strictly intended for individuals residing in the state(s) of GA. No offers may be made or accepted from any resident outside the specific states referenced.

Prepared by Broadridge Investor Communication Solutions, Inc. Copyright 2018.