Tip #4:Tax-free savings bonds. If you redeem a Series EE or I Bond to pay for college expenses, you may not have to pay taxes on the earned interest. This is a tax break for parents only. Eligible expenses include tuition and school fees. ...
Updated for Tax Year 2024 • April 29, 2025 1:39 PMOVERVIEWWhat college expenses are tax deductible for parents? Parents can deduct certain college expenses on their taxes, like tuition, fees, and sometimes interest on student loans. You might also be eligible for education credits like the...
If you've saved in a 529 college savings plan or a Coverdell education savings account, congratulations - the funds you withdraw for tuition and fees won't be taxed. But that will add another layer of complexity to your tax return. You can't get double tax breaks for the same educationa...
Prior to tax time, your school will also report qualified tuition expenses onForm 1098-T, along with the details on the amount of scholarships, fellowships and grants received. Hold onto your receipts for textbooks, supplies and equipment, Kantrowitz said. Form 1098-T won't have that informat...
You’ll need a 1098-T form from your college in order to apply. Again, you are only eligible to take a credit for educational expenses incurred during the tax year. Educational expenses include tuition and fees.If you have any more questions, ask your tax advisor for direction with the ...
Taking advantage of the HOPE Scholarship Tax Credit is easy, and the forms needed are available form the IRS or from the university's financial aid department. To apply for this credit simply report any and all tuition fees and related college attendance costs during the calendar year for ...
The deduction was available even if you didn'titemizeand it covered tuition and mandatory college expenses up to the maximum set by the IRS for the current tax year. Mandatory expenses included, for example, student activity fees if every student is required to pay them. ...
A 529 plan at tax time What happens at tax time when you’ve taken money out of your 529 plan to pay for higher-education expenses? The procedure is simple. When you pay for expenses, including tuition, books, computer equipment, and room and board, the school in which your bene...