Employer-Provided Educational Assistance You may receive up to $5,250 in tax-free education benefits from your employer each year. The payments do not have to be for work-related courses. The Tax Relief Act of 2010 extended employer-provided tax provisions through tax year 2012. Limitation If your employer pays for more than $5,250 of education benefits for … Read more
You may be able to deduct up to $2,500 of the interest you paid on student loans on your federal individual income tax return. The deduction is not limited to government-sponsored loans, but does not apply to loans made to students by family members. The Tax Relief Act of 2010 extended the student loan deduction … Read more
Lifetime Learning Tax Credit You may be able to claim a federal individual income Lifetime Learning Tax Credit of up to $2,000 for qualified tuition and related expenses per family. The Lifetime Learning Tax Credit reduces the amount of federal individual income taxes you may have to pay. Income Limits The amount of your Lifetime … Read more
American Opportunity Tax Credit The American Opportunity Tax Credit replaces the Hope Tax Credit through tax year 2012. The maximum credit is $2,500 for qualified tuition and related expenses for each eligible student. The American Opportunity Tax Credit reduces the amount of federal individual income taxes you may have to pay. A portion of the … Read more
Withdrawals from Traditional or Roth IRAs You may be able to avoid the 10 percent additional tax on traditional or Roth IRA withdrawals before age 59 1/2 when you use it for qualified higher education expenses. You will owe income tax on at least part of the amount withdrawn, but you will not have to … Read more
You may be able to deduct qualified tuition and related expenses even if you do not itemize deductions on Schedule A, Form 1040. This deduction may be beneficial to you if you cannot take either the American Opportunity or Lifetime Learning tax credit because your income is too high. Beginning in 2007, in order to … Read more
You may be able to deduct up to $2,500 of the interest you paid on student loans on your federal individual income tax return. The deduction is not limited to government-sponsored loans, but does not apply to loans made to students by family members. The Tax Relief Act of 2010 extended the student loan deduction … Read more
Federal Pell Grant These federally funded grants help about 5.4 million full- and part-time college and vocational school students nationally. Who is Eligible? Students with family incomes up to $60,000 may be eligible for Pell Grants. However, most Pell awards go to students with family incomes below $30,000. There is no charge to apply for … Read more
Academic Grants & Scholarships Federal and state governments as well as institutions award several academic-based grants and scholarships, generally for the completion of certain courses in high school, grades or based on the student’s field of study in college. Some scholarships require a separate application in addition to completing the FAFSA. Minnesota Academic Excellence Scholarships … Read more