Few advantages are as sought after by parents for their children as an education that will enable them to grow professionally and enjoy the benefits such an education can help bestow. The federal government supports and encourages their efforts to provide that education through various programs and income tax incentives.
This course will examine the programs, credits, deductions and federal income tax treatment of various items that affect saving for and financing an individual's education. In so doing, it will consider:
Qualified tuition programs;
Coverdell education savings accounts;
The education savings bond program;
Federal tax credits for education;
The federal tax treatment of scholarships, fellowships, grants and tuition reductions; and
Deductions available for student loan interest.
Learning Objectives
Upon successful completion of this course, participants will be able to:
Chapter 1
Compare prepaid tuition plans with college savings plans
Identify the expenses considered qualified education expenses under a qualified tuition program and the educational institutions at which such expenses may be incurred
Recognize the rules applicable to IRC Section 529 qualified tuition program contribution limits and the tax treatment of plan contributions
Apply the applicable tax law to IRC Section 529 qualified tuition program distributions.
Chapter 2
Apply the federal income tax rules to ESA contributions, earnings, and distributions
Recognize the eligibility requirements applicable to ESA contributors and beneficiaries
Identify the ESA contribution limits
Apply the rules governing ESA rollovers
Chapter 3
Identify the U.S. savings bonds included in the education savings bond program
List the education expenses that qualify under the education savings bond program
Recognize the kind of educational institutions that are eligible for inclusion in the education savings bond program
Identify the benefits whose receipt reduce a taxpayer's qualified education expenses
Calculate the tax-free portion of adjusted qualified education expenses
Chapter 4
Recognize who is eligible to claim the tax credits
Identify the expenses considered qualified education expenses and those expenses that do not qualify
List the benefits for which qualified education expenses must be adjusted
Define an eligible educational institution
Calculate the available tax credits
Apply the tax-benefit recapture rules
Chapter 5
Identify the tax treatment of educational assistance, including -
Scholarships and fellowships,
Fulbright grants,
Need-based education grants,
Veterans' education benefits, and
Tuition reductions.
Calculate the student loan interest deduction available to a taxpayer; and
Apply the applicable federal income tax rules to student loan cancellations and repayment assistance.
Major Topics
Section 529 Qualified Tuition Programs
Coverdell Education Savings Accounts
Education Savings Bond Program
Educational Tax Credits
Educational Assistance & Student Loan Interest
