Publication 970 |
2000 Tax Year |
Introduction
This publication explains the tax benefits for persons who are
saving for or paying higher education costs for themselves and members
of their families. It covers the following topics.
- The Hope credit.
- The lifetime learning credit.
- The deduction of student loan interest.
- Canceled student loans.
- Education individual retirement arrangements (education
IRAs).
- Withdrawals from traditional or Roth IRAs for the costs of
higher education.
- The exclusion of savings bond interest used to pay the costs
of higher education.
- Employer-provided educational assistance benefits.
- Qualified state tuition programs.
You generally cannot claim more than one benefit for the same
education expense.
Appendix B on page 34 gives you a general comparison of
some features of the different benefits. You may find it helpful in
determining the benefits for which you are eligible.
This publication does not cover the itemized deduction you may be
able to claim for work-related educational expenses. Information on
that deduction can be found in Publication 508,
Tax Benefits for
Work-Related Education. This publication also does not cover
scholarships that you may be able to exclude from your income.
Information on scholarships can be found in Publication 520,
Scholarships and Fellowships.
You may be able to reduce the amount of your federal income tax
withholding throughout the year based on your estimated tax benefits
for higher education. After you figure the amount of your estimated
2001 income, exclusions, deductions, and credit(s), see Publication 919,
How Do I Adjust My Tax Withholding?
Caution. You should check your withholding again during
the year if there are changes to your personal or financial situation
that would affect your expected 2001 tax liability, including your
allowable higher education tax benefits.
Comments and suggestions.
We welcome your comments about this publication and your
suggestions for future editions.
You can e-mail us while visiting our web site at
www.irs.gov/help/email2.html.
You can write to us at the following address:
Internal Revenue Service
Technical Publications Branch
W:CAR:MP:FP:P
1111 Constitution Ave. NW
Washington, DC 20224
We respond to many letters by telephone. Therefore, it would be
helpful if you would include your daytime phone number, including the
area code, in your correspondence.
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