Education Tax Benefits

Parents often seek ways to ease the financial burden of education, and the federal government offers valuable tax incentives to support those efforts. Explore the tax treatment of education-related savings and expenses, including qualified tuition programs, education savings accounts, tax credits, scholarships, and student loan interest deductions. Gain a clear understanding of how these programs can help families save for and finance higher education.

• Identify the features and tax benefits of qualified tuition programs available under IRC §529
• Recognize the limits and tax treatment of contributions to and distributions from a Coverdell education savings account (ESA)
• Identify the tax treatment of interest earned under qualified U.S. savings bonds used to pay certain education expenses
• Apply the American opportunity credit and lifetime learning credit rules
• Recognize the tax treatment given to scholarships, fellowships and other types of educational assistance
• Apply the federal income tax rules applicable to student loan interest and student loan cancellations and repayment assistance