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Eligible student: American opportunity credit 18 Lifetime learning credit 29 Student loan interest deduction 32 Employer-provided educational assistance 58, 59 ESAs (See Coverdell education savings account (ESA)) Estimated tax 3 Excess contributions: Coverdell ESA 44 Excess expenses, accountable plan 66 Expenses (See specific benefit) F Family members, beneficiary: Coverdell ESA 45 Qualified tuition program (QTP) 54 Fee-basis officials, work-related education deduction 66 Fellowship grants (See Scholarships and fellowship grants) Figures (See Tables and figures) Figuring tax-free and taxable (Worksheet 1-1) 6 Financial aid (See Scholarships and fellowship grants) Form 1098-E: Student loan interest deduction 33, 35 Form 1098-T: American opportunity credit 20 Lifetime learning credit 30 Form 1099-Q: Coverdell ESA 44, 46 Qualified tuition program (QTP) 52 Form 1099-R: Early distributions from IRAs 56 Form 2106 65 Form 5329: Coverdell ESA 49 Early distributions from IRAs 56 Qualified tuition program (QTP) 54 Form 8815 58 Form 8863: Filled-in examples 77 Form W-9S 20, 30, 35 Fulbright grants 7 G Glossary 4, 82–84 Graduate education tuition reduction 9 Grants: Fulbright 7 Pell 8 Title IV need-based education 8 H Half-time student: American opportunity credit 18 Coverdell ESA 41 Early distributions from IRAs 56 Student loan interest deduction 32 I Illustrated example of education credits (Appendix A) 72–77 Impairment-related work expenses: Work-related education deduction 67 Individual retirement arrangements (IRAs) (See Early distributions from IRAs) L Lifetime learning credit 23 Academic period 24 Adjustments to qualified education expenses 25 Claiming dependent's expenses 29 Tuition reduction 30 Claiming the credit 23, 24, 31 Qualifying to claim (Figure 3-1) 26 Contrast to the American opportunity credit 80 Coordination with Coverdell ESA distributions 47 Coordination with qualified tuition program (QTP) distributions 53 Eligible educational institution 24 Eligible student 29 Expenses qualifying for 24–27 Figuring the credit 30, 31 Income level, effect on amount of credit 30, 31 Income limits 30 Modified adjusted gross income (MAGI) 30 Worksheet 3-1 30 Overview (Table 3-1) 24 Phaseout 30 Qualified education expenses 24, 27 Qualifying to claim (Figure 3-1) 26 Tax benefit of 23 Loans: Cancellation (See Student loan cancellation) Capitalized interest on student loan 33 Origination fees on student loan 33 Qualified education expenses paid with: American opportunity credit 12 Lifetime learning credit 24 Student loan repayment assistance 39 Losses, deducting: Coverdell ESA 48 Qualified tuition program (QTP) 54 Luxury water transportation 64 M Mileage deduction for work-related education 59, 64 Military academy cadets 8 Missing children, photographs of 3 Modified adjusted gross income (MAGI): American opportunity credit 22 Coverdell ESA 42 Worksheet 6-1 43 Education savings bond program 58 Lifetime learning credit 30 Worksheet 3-1 30 Student loan interest deduction 35 Table 4-2 35 N National Health Service Corps Scholarship Program 6, 8 Nonaccountable plans: Work-related education 66 P Pell grants 8, 28 Performing artists, work-related education deduction 66 Phaseout: American opportunity credit 21 Education savings bond program 58 Lifetime learning credit 30 Student loan interest deduction 35, 36 Publications (See Tax help) Q Qualified education expenses: Adjustments to: American opportunity credit 14–16 Coverdell ESA 46 Education savings bond program 57 Lifetime learning credit 25 Qualified tuition program (QTP) 52 Student loan interest deduction 33 Work-related education 65 American opportunity credit 13–16 Coverdell ESA 40, 41 Early distributions from IRAs 55 Education savings bond program 57 Expenses not qualified: American opportunity credit 17, 18 Lifetime learning credit 29 Lifetime learning credit 24–27 Qualified tuition program (QTP) 51 Scholarships and fellowship grants 6 Student loan interest deduction 32 Work-related education 63–65 Qualified elementary and secondary education expenses: Coverdell ESAs 41 Qualified employer plans: Student loan interest deduction not allowed 32 Qualified student loans 32 Qualified tuition program (QTP) 51–55 Additional tax on taxable distributions 54 Change of designated beneficiary 55 Contributions to 52 Coordination with American opportunity and lifetime learning credits 53 Coordination with Coverdell ESA distributions 53 Defined 51 Eligible educational institution 51 Figuring taxable portion of distribution 52 Losses 54 Recontribution 52 Rollovers 54, 55 Taxability of distributions 52–54 Taxable earnings 53 Tax benefit of 51 Transfers 54, 55 Qualified tuition reduction 8, 9 Qualified U.S. savings bonds 57 Qualifying work-related education 60–63 Determining if qualified (Figure 11-1) 61 R Recapture: American opportunity credit 15 Lifetime learning credit 27 Recordkeeping requirements: Work-related education 67 Refinanced and consolidated student loans 33 Reimbursements: Nondeductible expenses 66 Work-related education 65, 66 Related persons: Coverdell ESA 45 Qualified tuition program (QTP) 54 Page 86 Publication 970 (2021)