No one doubts the importance of education—for ourselves, our children, and our grandchildren—but obtaining it can be pricey. According to the College Board, the average cost of 1 year in a public university is over $21,500 and for a private college today is over $44,000 (most of the top schools cost is now approaching $60,000 annually), and the cost of higher education is increasing at more than 4% annually (compared with an overall inflation rate of about 3%). Fortunately, the tax law provides many incentives to help you save for education and to pay for it on a tax-advantaged basis.
This chapter explains education-related tax benefits, including:
For more information, see IRS Publication 970, Tax Benefits for Education.
Companies want an educated ...