J.K. Lasser's Your Income Tax 2017

Chapter 33 Educational Tax Benefits

1. 33.1 Scholarships and Grants
2. 33.2 Tuition Reductions for College Employees
3. 33.3 How Fulbright Awards Are Taxed
4. 33.4 United States Savings Bond Tuition Plans
5. 33.5 Contributing to a Qualified Tuition Program (Section 529 Plan)
6. 33.6 Distributions From Qualified Tuition Programs (Section 529 Plans)
7. 33.7 Education Tax Credits
8. 33.8 American Opportunity Credit
9. 33.9 Lifetime Learning Credit
10. 33.10 Contributing to a Coverdell Education Savings Account (ESA)
11. 33.11 Distributions From Coverdell ESAs
12. 33.12 Tuition and Fees Deduction
13. 33.13 Student Loan Interest Deduction
14. 33.14 Types of Deductible Work-Related Costs
15. 33.15 Work-Related Tests for Education Costs
16. 33.16 Local Transportation and Travel Away From Home To Take Courses

The tax law provides several tax benefits for people attending school. If you can take advantage of them, you are in effect receiving a government subsidy that lowers the cost of education.

The American Opportunity Tax Credit, the Lifetime Learning credit, the student loan interest deduction, and state-sponsored college tuition programs and Coverdell ESAs can provide substantial tax savings. The above-the-line deduction for higher education tuition and fees may be available if you do not claim an American Opportunity or Lifetime Learning credit. However, these tax benefit provisions are hedged with restrictions, such as income-based limitations, that may bar or limit their availability.

33.1 Scholarships and Grants

Scholarships ...