Coverdell Education Savings Account You can contribute up to $2,000 a year to Coverdell savings accounts in 2020. These accounts can be used to offset the cost of elementary and secondary education, as well as post-secondary education.
American Opportunity Tax Credit For 2020, the maximum American Opportunity Tax Credit that can be used to offset certain higher education expenses is $2,500 per student. For 2020, the amount of your credit begins to phase out if your modified adjusted gross income (MAGI) is between $80,000 and $90,000 ($160,000 and $180,000 if you file a joint return). You cannot claim a credit if your MAGI is $90,000 or more ($180,000 or more if you file a joint return).
Lifetime Learning Credit A credit of up to $2,000 is available for an unlimited number of years for certain costs of post-secondary or graduate courses or courses to acquire or improve your job skills. For 2020, the modified adjusted gross income (MAGI) threshold at which the Lifetime Learning Credit begins to phase out is $118,000 for joint filers and $59,000 for singles and heads of household. The credit cannot be claimed if your MAGI is $69,000 or more ($138,000 for joint returns).
Employer-Provided Educational Assistance As an employee in 2020, you can exclude up to $5,250 of qualifying postsecondary and graduate education expenses that are reimbursed by your employer.