Today taxpayers must plan for their children’s education. Touching on various topics such as qualified tuition programs (QTPs), scholarships, and fellowships, this mini-course examines the tax treatment of costs related to education. Practitioners will learn the ins and outs of the tax benefits concerning education and will be able to identify those educational expenses that are deductible. Additionally, financial planning strategies and techniques are outlined to better prepare taxpayers for future educational costs. As a result of studying the assigned materials, you should be able to meet the objectives listed below.
ASSIGNMENT
At the start of the materials, participants should identify the following topics for study:
* Work-related educational expenses
* Educational expense credits
* Education savings accounts
* Deduction for student loan interest
* Qualified tuition programs
* Higher education expense deduction
* IRA withdrawals for education expenses
* Scholarships & fellowships
* Educational savings bonds
* Educational incentives & financial aid
Learning Objectives
After reading the materials, participants will be able to:
1. Identify deductible education expenses and travel costs under the requirements of 162.
2. Determine the qualified credit amounts under the HOPE (American Opportunity) Credit and the requirements of Coverdell education savings accounts.
3. Identify the deductible amount to claim for 221 student loan interest and recognize the permissible benefits of 529 qualified tuition programs.
4. Specify the tax-free benefits of 117 scholarships and fellowships and who is eligible for a 132 qualified tuition reduction.
5. Identify educational incentives and financial aid requirements to meet college funding needs.
