2007 tax inflation adjustments announced
The IRS has finalized the 2007 inflation adjustments under various tax provisions. Those affecting college savers include the following:
- The standard deduction for a dependent with no earned income remains at $850, and the kiddie tax threshold for unearned income remains at $1,700.
- The income phase-out for the Hope and Lifetime Learning credits is $47,000 to $57,000 ($94,000 to $114,000 for joint filers). The maximum Hope credit remains at $1,650.
- The income phase-out for the education savings bond exclusion is $65,600 to $80,600 ($98,400 to $128,400 for joint filers).
- The gift tax annual exclusion remains at $12,000.
For more information, click hereReturn to 529 News center- The standard deduction for a dependent with no earned income remains at $850, and the kiddie tax threshold for unearned income remains at $1,700.
- The income phase-out for the Hope and Lifetime Learning credits is $47,000 to $57,000 ($94,000 to $114,000 for joint filers). The maximum Hope credit remains at $1,650.
- The income phase-out for the education savings bond exclusion is $65,600 to $80,600 ($98,400 to $128,400 for joint filers).
- The gift tax annual exclusion remains at $12,000.