CHAPTER 3 Education Costs
- Employer-Paid Courses
- Scholarships, Fellowships, and Grants
- American Opportunity Credit
- Lifetime Learning Credit
- Job-Related Education
- Tuition and Fees Deduction
- Student Loan Interest
- Interest on U.S. Savings Bonds
- Coverdell Education Savings Accounts
- Qualified Tuition Programs (529 Plans)
- Seminars
- Educational Travel
- Cancellation of a Student Loan
- Penalty-Free Withdrawals from IRAs
- Government Reimbursements
No one doubts the importance of education—for ourselves, our children, and our grandchildren—but obtaining it can be pricey. According to the Scholarship Workshop, the average cost of one year in a public university for 2014–2015 is over $29,110 and for a private college is over $62,740, and the cost of higher education is increasing at about 5% annually (compared with an overall inflation rate of 1.5% for the first 6 months of 2014). 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 the tax deductions, credits, and other breaks you can claim with respect to education costs. For more information, see IRS Publication 970, Tax Benefits for Education.
Employer-Paid Courses
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