Higher education figures at-a-glance
| 2009 | 2010 | |
| Coverdell education savings accounts (formerly known as education IRAs) | ||
| Annual contribution limit | $2,000 | $2,000 |
| MAGI phaseout range for Coverdell education savings accounts: | ||
| 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 | ||
| Maximum deduction | $4,000 | N/A |
| MAGI maximum for full $4,000 deduction: | ||
| Single | $65,000 | N/A |
| Married filing jointly | $130,000 | N/A |
| Reduced deduction available | $2,000 | N/A |
| MAGI range for $2,000 deduction: | ||
| Single--MAGI greater than this amount | $65,000 | N/A |
| Single--MAGI does not exceed this amount | $80,000 | N/A |
| Married filing jointly--MAGI greater than this amount | $130,000 | N/A |
| Married filing jointly--MAGI does not exceed this amount | $160,000 | N/A |
| Education loans--interest deduction | ||
| Maximum deduction for interest paid on qualified education loans | $2,500 | $2,500 |
| MAGI phaseout range: | ||
| Single--phaseout threshold amount | $60,000 | $60,000 |
| Single--completed phaseout amount after | $75,000 | $75,000 |
| Married filing jointly--phaseout threshold amount | $120,000 | $120,000 |
| Married filing jointly--completed phaseout threshold amount | $150,000 | $150,000 |
| Gift tax exclusion | ||
| Annual gift tax exclusion--single individual | $13,000 | $13,000 |
| Annual gift tax exclusion--joint gift | $26,000 | $26,000 |
| Lump-sum gift to 529 plan--single individual | $65,000 | $65,000 |
| Lump-sum gift to 529 plan--joint gift | $130,000 | $130,000 |
| Hope1 and Lifetime Learning Credits | ||
| Maximum Lifetime Learning credit | $2,000 | $2,000 |
| Maximum Lifetime Learning credit--Midwestern disaster area | $4,000 | N/A |
| Maximum Hope credit | $2,500 | $2,500 |
| Maximum Hope credit--Midwestern disaster area | $3,600 | N/A |
| MAGI phaseout range for Lifetime Learning Credit: | ||
| Single--phaseout threshold amount | $50,000 | $50,000 |
| Single--completed phaseout amount after | $60,000 | $60,000 |
| Married filing jointly--phaseout threshold amount | $100,000 | $100,000 |
| Married filing jointly--completed phaseout threshold amount | $120,000 | $120,000 |
| MAGI phaseout range for Hope Credit | ||
| 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 threshold amount | $180,000 | $180,000 |
| Kiddie tax | ||
| Generally, children2 pay federal income tax at their parents' rate on any investment income over ... | $1,900 | $1,900 |
| U.S. savings bonds--interest exclusion for higher education expenses | ||
| Joint returns: | ||
| Phaseout threshold for joint returns | $104,900 | $105,100 |
| Completed phaseout amount after | $134,900 | $135,100 |
| Other returns: | ||
| Phaseout threshold for other returns | $69,950 | $70,100 |
| Completed phaseout amount after | $84,950 | $85,100 |
1 For 2009 and 2010, the American Recovery and Reinvestment Act of 2009 modifies the Hope credit and renames it the American Opportunity tax credit.
2 For tax years beginning after May 25, 2007, the kiddie tax rules apply to children under age 19 and full-time students over age 18 but under age 24 unless an exception applies.