- Tax credits- Hope and Lifetime Learning;
- Above –the-line deduction for higher education expenses;
- Deduction of student loan interest;
- Tax-free withdrawals from education savings accounts (ESAs);
- Tax-free withdrawals from state-sponsored and private tuition savings plans; and
- Tax free, employer-provided tuition benefit
Remember to save your records of all education-related payments and financial aid for tax purposes. Institutions are required to provide Form 1098T, Tuition Payments Statement, to students from whom or on whose behalf they receive tuition payments (with the exception of continuing education students and nonresident alien students). Banks, institutions, and other lenders that collect student loan interest payments must issue annual information returns Form 1098E, Student Loan Interest Payments to individuals from whom they collect more than $600 in interest during the tax year.
For more information about these tax benefits : IRS Publication 970, Tax Benefits for Higher Education and Publication 520, Scholarships and Fellowships, are available from the IRS website at www.irs.gov or by calling 1-800-TAX-FORM.