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Education Tax Benefits - Mini CourseCode: 22-EDUC2
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Course description and objectives:
Today taxpayers must plan for their children's education. Touching on various topics such as qualified tuition programs (QTPs), scholarships and fellowships, this mini-course examines the tax treatment of costs related to education. Practitioners will learn the ins and outs of the tax benefits concerning education and will be able to identify those educational expenses that are deductible. Additionally, financial planning strategies and techniques are outlined to better prepare taxpayers for future educational costs.
After reading the materials, participants will be able to:
1. Distinguish qualifying education from nonqualifying education under §162 and thereby determine which work-related expenses can be deducted.
2. Point out the differences between the HOPE (“American Opportunity”) Credit and the Lifetime Learning Credit, what costs and fees are covered by each credit, and explain to clients the requirements of Coverdell education savings accounts and the tax deferral benefits of such accounts.
3. Discuss how to claim deductions for student loan interest under §221 including when the cancellation of such a loan can be excluded from income under the §108(f) and explain the importance of employer-provided educational assistance particularly the advantages it offers to employees.
4. List the tax-free benefits of scholarships and fellowships and their affect on income and identify who is eligible for the qualified tuition deduction and under what circumstances the deduction can be used.
5. Explain to clients how educational incentives and financial aid resources may be useful for financial planning.
Presentation Method: Self-Study
CPE credit: 2 Hours
Program Level: Update
Advance Preparation: None
Exam expiration date: Participants must submit exams for grading within one year from the date of purchase