Study Guide-Education Tax Benefits
The study guide is provided to guide you through the course material in a step by step format.
Course material is a PDF document.
Chapter 1 – §529 Qualified Tuition Programs
Assignment: Chapter 1 <<>> Review Questions Group #1: # 1-5
When you have completed this chapter, you should be able to:
- 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 §529 qualified tuition program contribution limits and the tax treatment of plan contributions; and
- Apply the applicable tax law to IRC §529 qualified tuition program distributions.
Chapter 2 – Coverdell Education Savings Accounts
Assignment: Chapter 2 <<>> Review Questions Group #2: #1-6
In this chapter we will look at the rules governing Coverdell Education Savings Accounts (ESAs). When you have completed this chapter, you should be able to:
- 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; and
- Apply the rules governing ESA rollovers.
Chapter 3 – Education Savings Bond Program
Assignment: Chapter 3 <<>> Review Questions Group #3: #1-5
In this chapter we will look at the federal education savings bond program rules. When you have completed this chapter, you should be able to:
- 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 reduce a taxpayer’s qualified education expenses; and
- Calculate the tax-free portion of adjusted qualified education expenses.
Chapter 4 – Education Tax Credits
Assignment: Chapter 4 <<>> Review Questions Group #4: #1-6
When you have completed this chapter, you should be able to:
- Recognize who is eligible to claim the tax credits;
- Identify the expenses considered qualified education expenses and those expenses that do not qualify;
- List the benefits for which qualified education expenses must be adjusted;
- Define an eligible educational institution;
- Calculate the available tax credits; and
- Apply the tax-benefit recapture rules.
Chapter 5 – Taxation of Educational Assistance, Tuition & Fees and Student Loans
Assignment: Chapter 5 <<>> Review Questions Group #5: #1-5
When you have completed this chapter, you should be able to:
- Identify the tax treatment of educational assistance, including –
- Scholarships and fellowships,
- Fulbright grants,
- Need-based education grants,
- Veterans’ education benefits, and
- Tuition reductions;
- Recognize the federal income tax treatment of tuition and fees paid for higher education;
- Calculate the student loan interest deduction available to a taxpayer; and
- Apply the applicable federal income tax rules to student loan cancellations and repayment assistance.
