The federal government supports and encourages parents efforts to provide that education through various programs and income tax incentives. This course examines the programs, credits, deductions, and federal income tax treatment of various items that affect saving for and financing an individuals 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.

Learning Objectives

• Identify the features and tax benefits of Qualified Tuition Programs available under IRC Section 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