Education Tax Benefits ON DEMAND

Overview

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.

Highlights

Section 529 qualified tuition programs. Coverdell education savings accounts. Education savings bond program. Educational tax credits. Educational assistance and student loan interest.

Prerequisites

None.

Designed For

CPAs, financial professionals, enrolled agents and attorneys.

Objectives

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. 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. 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 reduces a taxpayer’s qualified education expenses. Calculate the tax-free portion of adjusted qualified education expenses. Recognize who is eligible to claim the tax credits. Identify the expenses considered qualified education expenses and those expenses that do not qualify.

Preparation

None.

Notice

None.