Students can save money as they pay for college if they are familiar with the tax benefits offered for higher education by the Federal Government. These benefits include:
The American Opportunity Grant
Lifetime Learning Credit
Student Loan Interest Deduction
Tuition and Fees Deduction
Coverdell Education Savings Account
IRA Withdrawals
Employer-Provided Education Benefits
529 Plans
Education Savings Bonds
Business Deduction for Work-Related Education
The Tax Benefits for Education Information Center describes these benefits in great detail and includes a number of links to other pertinent information. You may also call the IRS with your tax questions at 800-829-1040.
