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Description
Provides nonrefundable tax credit to middle income taxpayers up to $1,500 per student per year for part of the first two years of qualifying college costs not including room, board, books or fees.
Equal to 20 percent of qualifying college costs up to $5,000 for unlimited number of years (increasing to $10,000 after 12/31/02). Costs include tuition and fees.
Nondeductible IRA established only for college expenses of a beneficiary, including tuition and fees. Room and board may also qualify. Limited to $500 per beneficiary per year
Prepayment of qualified higher education expense including room and board (if state program permits) to a state or its agency for a beneficiary. Income is taxed federally to recipient upon distribution.
Individual who redeems qualified U.S. savings bond in a year in which qualified higher education expenses are paid may exclude redemption from income. Qualified expenses are tuition and fees only.
A limited above the line deduction is allowed for interest payments due and paid on any qualified education loan. Deduction is allowed with respect to interest paid during the first 60 months in which interest is required.
Exception to the 10 per- ‘ cent early withdrawal penalty rules for distribution from an IRA if used to pay tuition, room, board and some other expenses
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