J.K. Lasser's Your Income Tax 2023, 2nd Edition

CHAPTER 33Educational Tax Benefits

33.1	Scholarships and Grants	618
33.2	Tuition Reductions for College Employees	618
33.3	How Fulbright Awards Are Taxed	618
33.4	United States Savings Bond Tuition Plans	618
33.5	Contributing to a Qualified Tuition Program (Section 529 Plan)	620
33.6	Distributions From Qualified Tuition Programs (Section 529 Plans)	621
33.7	Education Tax Credits	623
33.8	American Opportunity Credit	624
33.9	Lifetime Learning Credit	626
33.10	Contributing to a Coverdell Education Savings Account (ESA)	627
33.11	Distributions From Coverdell ESAs	628
33.12	Tuition and Fees Deduction No Longer Allowed	630
33.13	Student Loan Interest Deduction	630
33.14	Types of Deductible Education Costs Related to Work	632
33.15	Work‐Related Tests for Education Costs	632
33.16	Local Transportation and Travel Away From Home To Take Courses	633

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.

Qualified tuition programs (529 plans), which are designed primarily to cover higher education costs, can also be used to pay tuition up to $10,000 for elementary and secondary school, student loans up to $10,000 for the beneficiary and each sibling, and expenses related to apprenticeship programs.

The American opportunity tax credit, the lifetime learning credit, the student loan interest deduction, and Coverdell ...