Education Tax Benefits

This course examines the programs, credits, deductions, and federal income tax treatment of various items that affect saving for and financing an individual’s education. In so doing, it considers qualified tuition programs (QTPs), Coverdell education savings accounts (ESAs), the education savings bond program, federal tax credits for education, the federal tax treatment of scholarships, fellowships, grants and tuition reductions, and the deductions available for student loan interest, tuition, and fees.

Numerous examples are provided to illustrate the subject matter and to describe practical situations where tax benefits can help offset education costs.

Learning Objectives:
After completing this course, students will be able to:
  • 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 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, payment of tuition and fees, and student loan cancellations and repayment assistance
Tax Year:  2019
Prerequisites:  None
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