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 will consider:
• Qualified tuition programs;
• Coverdell education savings accounts;
• The education savings bond program;
• Federal tax credits for education;
• The federal tax treatment of scholarships, fellowships, grants and tuition reductions; and
• Deductions available for student loan interest
Upon completion of this course, you should 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; and
- Apply the federal income tax rules applicable to student loan interest, student loan cancellations, and repayment assistance.
