Coverdell education savings accounts (formerly known as education IRAs)
| 2011 | 2012 |
|---|
| Annual contribution limit | $2,000 | $2,000 |
| MAGI phaseout range for Coverdell education savings accounts | 2011 | 2012 |
|---|
| 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 |
eduction for qualified higher education expenses
| 2011 | 2012 |
|---|
| Maximum deduction | $4,000 | N/A |
| MAGI maximum for full $4,000 deduction | 2011 | 2012 |
|---|
| Single | $65,000 | N/A |
| Married filing jointly | $130,000 | N/A |
| 2011 | 2012 |
|---|
| Reduced deduction available | $2,000 | N/A |
| MAGI range for $2,000 deduction | 2011 | 2012 |
|---|
| 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
| 2011 | 2012 |
|---|
| Maximum deduction for interest paid on qualified education loans | $2,500 | $2,500 |
| MAGI phaseout range | 2011 | 2012 |
|---|
| 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 | $125,000 |
| Married filing jointly–completed phaseout amount after | $150,000 | $155,000 |
Gift tax exclusion
| 2011 | 2012 |
|---|
| 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 |
Hope 1 and Lifetime Learning Credits
| 2011 | 2012 |
|---|
| Maximum Lifetime Learning credit | $2,000 | $2,000 |
| Maximum Hope credit | $2,500 | $2,500 |
1 For 2010 through 2012, the Hope credit is renamed the American Opportunity tax credit
| MAGI phaseout range for Lifetime Learning Credit | 2011 | 2012 |
|---|
| Single–phaseout threshold amount | $51,000 | $52,000 |
| Single–completed phaseout amount after | $61,000 | $62,000 |
| Married filing jointly–phaseout threshold amount | $102,000 | $104,000 |
| Married filing jointly–completed phaseout amount after | $122,000 | $124,000 |
| MAGI phaseout range for Hope Credit | 2011 | 2012 |
|---|
| 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 |
Kiddie tax
| 2011 | 2012 |
|---|
| Generally, children 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 | 2011 | 2012 |
|---|
| Phaseout threshold for joint returns | $106,650 | $109,250 |
| Completed phaseout amount after | $136,650 | $139,250 |
| Other returns | 2011 | 2012 |
|---|
| Phaseout threshold for other returns | $71,100 | $72,850 |
| Completed phaseout amount after | $86,100 | $87,850 |
This information, developed by an independent third party, has been obtained from sources considered to be reliable, but Raymond James Financial Services, Inc. does not guarantee that the foregoing material is accurate or complete. This information is not a complete summary or statement of all available data necessary for making an investment decision and does not constitute a recommendation. The information contained in this report does not purport to be a complete description of the securities, markets, or developments referred to in this material. This information is not intended as a solicitation or an offer to buy or sell any security referred to herein. Investments mentioned may not be suitable for all investors. The material is general in nature. Past performance may not be indicative of future results. Raymond James Financial Services, Inc. does not provide advice on tax, legal or mortgage issues. These matters should be discussed with the appropriate professional.
Securities offered through Raymond James Financial Services, Inc., member FINRA/SIPC, an independent broker/dealer, and are not insured by FDIC, NCUA or any other government agency, are not deposits or obligations of the financial institution, are not guaranteed by the financial institution, and are subject to risks, including the possible loss of principal.
Prepared by Broadridge Investor Communication Solutions, Inc. Copyright 2011.
