Inflation adjustment affecting college savers
- The kiddie tax threshold increases from $2,000 unearned income to $2,100 unearned income.
- The income phase-out for the Lifetime Learning Credit increases from $54,000 to $55,000 ( from $108,000 to $110,000 for a joint return).
- The income phase-out range for qualified education savings bonds increases to $115,750 - $145,750 for joint returns and $77,200 - $92,200 for all other returns.
- The lifetime exemption for gift and estate tax purposes increases from $5.34 million to $5.43 million. (The gift-tax annual exclusion remains at $14,000.)