This course is specifically for Enrolled Agents that need to report to the IRS.

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.

Learning Assignment & Objectives

As a result of studying the assigned materials, you should be able to meet the objectives listed below.

ASSIGNMENT

At the start of the materials, participants should identify the following topics for study:

• Work-related educational expenses
  
• Educational expense credits
  
• Education savings accounts
  
• Deduction for student loan interest
  
• Qualified tuition programs
  
• Higher education expense deduction
  
• IRA withdrawals for education expenses
  
• Scholarships & fellowships
  
• Educational savings bonds
  
• Educational incentives & financial aid
  

Learning Objectives

After reading the materials, participants will be able to:

1. Identify deductible education expenses and travel costs under the requirements of §162.
   
2. Determine the qualified credit amounts under the American Opportunity Tax Credit and the requirements of Coverdell education savings accounts.
   
3. Identify the deductible amount to claim for §221 student loan interest and recognize the permissible benefits of §529 qualified tuition programs.
   
4. Specify the tax-free benefits of §117 scholarships and fellowships and who is eligible for a §132 qualified tuition reduction.
   
5. Identify educational incentives and financial aid requirements to meet college funding needs.
   

After studying the materials, answer exam questions 1 to 10.

Revision Date: 2/19/2025

Additional Contents : Complete, no additional material needed
Advance Preparation : None
Intended Participants : Any CPA looking to maintain or enhance their professional competence
Course Declaration : Participants must complete the final examination within one year of purchase. A minimum passing grade of 70% or better is required to receive CPE
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