Completed phase-out amount: other returns $14,590 $14,820 $14,880 2016 SAVINGS BOND EXCLUSION Limitation on exclusion of income from U.S. savings bonds for 2015 2016 taxpayers who pay qualified higher education expenses (Sec. 135) Married individuals filing joint returns and surviving $115,750 $116,300 amount for beginning phaseout Exemption fully phased out $145,750 $146,300 All others—threshold amount for beginning phaseout $77,200 $77,550 Exemption fully phased out $92,200 $92,550 2016 EDUCATION CREDITS AND DEDUCTIONS 2015 2016 Hope Scholarship credit is 100% for qualified expenses up to: $2,000 $2,000 Hope credit is 25% for qualified expenses up to the next: $2,000 $2,000 Phase-out floor for Lifetime learning credits Joint returns $110,000 $111,000 All other returns $55,000 $55,000 Phase-out floor for Hope Scholarship credit Joint returns $160,000 $160,000 All other returns $80,000 $80,000 Maximum interest deduction for education loans (Sec. 221) $2,500 $2,500 Married filing jointly Reduction begins when adjusted gross income exceeds $130,000 $130,000 Complete elimination of deduction when AGI exceeds $160,000 $160,000 $2,500 $2,500 All other taxpayers Reduction begins when adjusted gross income exceeds $65,000 $65,000 Complete elimination of deduction when AGI exceeds $80,000 $80,000
Completed phase-out amount: other returns $14,590 $14,820 $14,880 2016 SAVINGS BOND EXCLUSION Limitation on exclusion of income from U.S. savings bonds for taxpayers who pay qualified higher education expenses (Sec. 135) 2015 2016 Married individuals filing joint returns and surviving amount for beginning phaseout $115,750 $116,300 Exemption fully phased out $145,750 $146,300 All others—threshold amount for beginning phaseout $77,200 $77,550 Exemption fully phased out $92,200 $92,550 2016 EDUCATION CREDITS AND DEDUCTIONS 2015 2016 Hope Scholarship credit is 100% for qualified expenses up to: $2,000 $2,000 Hope credit is 25% for qualified expenses up to the next: $2,000 $2,000 Phase-out floor for Lifetime learning credits Joint returns $110,000 $111,000 All other returns $55,000 $55,000 Phase-out floor for Hope Scholarship credit Joint returns $160,000 $160,000 All other returns $80,000 $80,000 Maximum interest deduction for education loans (Sec. 221) Married filing jointly $2,500 $2,500 Reduction begins when adjusted gross income exceeds $130,000 $130,000 Complete elimination of deduction when AGI exceeds $160,000 $160,000 All other taxpayers $2,500 $2,500 Reduction begins when adjusted gross income exceeds $65,000 $65,000 Complete elimination of deduction when AGI exceeds $80,000 $80,000