Updated October 28, 2026. Quick answer: Worksheet 6-2 in Publication 970 figures how much you can put into a Coverdell education savings account for each beneficiary. The limit is $2,000, reduced once your modified AGI passes $95,000 ($190,000 on a joint return), and gone entirely once it reaches $110,000 ($220,000 jointly).
IRS worksheets for the 2025 return: Coverdell ESA Taxable Distributions Worksheet 6-3.
What the two worksheets do
Worksheet 6-1 builds the MAGI the limit uses, and Worksheet 6-2 applies the phaseout. The publication states the rule in one sentence: “To figure the limit on the amount you can contribute for each designated beneficiary, multiply $2,000 by a fraction.” The fraction’s top is your MAGI minus the starting point and its bottom is the phaseout range. The adjusted gross income that starts Worksheet 6-1 is on the form as “Amount from line 11a (adjusted gross income)”.
Worksheet 6-1: MAGI for a Coverdell ESA
| Line | What the worksheet says |
|---|---|
| 1 | “Enter your AGI (Form 1040 or 1040-SR, line 11a)” |
| 2 | “Enter your foreign earned income exclusion and/or housing exclusion (Form 2555, line 45)” |
| 3 | “Enter your foreign housing deduction (Form 2555, line 50)” |
| 4 | “Enter the amount of income from Puerto Rico you’re excluding” |
| 5 | “Enter the amount of income from American Samoa you’re excluding (Form 4563, line 15)” |
| 6 | “Add lines 2, 3, 4, and 5” |
| 7 | “Add lines 1 and 6. This is your MAGI” |
Worksheet 6-2: the contribution limit
| Line | What the worksheet says |
|---|---|
| 1 | “Maximum contribution”, printed as $2,000 |
| 2 | “Enter your MAGI for purposes of figuring the contribution limit to a Coverdell ESA (see definition or Worksheet 6-1)” |
| 3 | “Enter $190,000 if married filing jointly; $95,000 for all other filers” |
| 4 | “Subtract line 3 from line 2. If zero or less, enter -0- on line 4, skip lines 5 through 7, and enter $2,000 on line 8” |
| 5 | “Enter $30,000 if married filing jointly; $15,000 for all other filers” |
| Note | “If the amount on line 4 is greater than or equal to the amount on line 5, stop here. You aren’t allowed to contribute to a Coverdell ESA for 2025.” |
| 6 | “Divide line 4 by line 5 and enter the result as a decimal (rounded to at least 3 places)” |
| 7 | “Multiply line 1 by line 6” |
| 8 | “Subtract line 7 from line 1” |
The cap on all sources
A separate note applies on top of the worksheet: “The total Coverdell ESA contributions from all sources for the designated beneficiary during the tax year may not exceed $2,000.”
Where the limit reaches zero
The limit reaches zero when line 4 equals line 5. For a filer who is not married filing jointly, $95,000 plus $15,000 equals $110,000. For a joint return, $190,000 plus $30,000 equals $220,000.
The IRS example
Publication 970 works a single filer with MAGI of $96,500. The arithmetic:
| Item | Illustration |
|---|---|
| Line 1: maximum contribution | $2,000 |
| Line 2: MAGI (the IRS example, single filer) | $96,500 |
| Line 3: single filer | $95,000 |
| Line 4, computed: line 2 minus line 3 | $1,500 (computed) |
| Line 5: single filer | $15,000 |
| Line 6, computed: line 4 / line 5 | 0.100 |
| Line 7, computed: line 1 x line 6 | $200 (computed) |
| Line 8, computed: line 1 minus line 7 | $1,800 (computed) |
The filer can contribute up to $1,800 for each beneficiary.
An example on a joint return
Illustration, not an IRS example. The MAGI is invented.
| Item | Illustration |
|---|---|
| Line 2: MAGI on a joint return (an invented input for the computation) | $205,000 |
| Line 3: married filing jointly | $190,000 |
| Line 4, computed: line 2 minus line 3 | $15,000 (computed) |
| Line 5: married filing jointly | $30,000 |
| Line 6, computed: line 4 / line 5 | 0.500 |
| Line 7, computed: line 1 x line 6 | $1,000 (computed) |
| Line 8, computed: line 1 minus line 7 | $1,000 (computed) |
Halfway through the $30,000 range half of the $2,000 is gone.
Edition
This page reads Publication 970 (2025), the file irs.gov served on 2026-10-28 (sha256 in the kit data). It covers the 2025 return, filed in 2026. Check the tax year printed on the worksheet in your own copy and use that year’s line numbers and dollar amounts, because a different year’s worksheet can word its lines differently.
Common mistakes
- Using AGI alone as MAGI. Worksheet 6-1 adds back the foreign earned income exclusion and the other listed amounts.
- Treating the limit as per contributor. The $2,000 cap is the total from all sources for each beneficiary.
- Rounding line 6 to fewer than three places. The worksheet says at least 3 places.
Related: college money and 529 plans, 529 state tax benefits, education credits for 2027, and what to do with leftover 529 money.
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Answer againSources
- Publication 970 (2025), Tax Benefits for Education: https://www.irs.gov/pub/irs-pdf/p970.pdf
- Form 1040 (2025): https://www.irs.gov/pub/irs-pdf/f1040.pdf
Read from the IRS documents linked above on October 28, 2026. General information, not tax advice. Your own facts decide the outcome, and a preparer, the account provider or the IRS is the right place to confirm anything consequential.