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Student loan interest deduction 32 Repayment programs (See Student loan repayment assistance) Reporting: American opportunity credit 22 Coverdell ESA 44, 46, 49 Early distributions from IRAs 56 Education savings bond program 58 Lifetime learning credit 31 Qualified tuition program (QTP) 53, 54 Scholarships and fellowship grants, taxable 7 Student loan interest deduction 36 Tuition reduction, taxable 9 Work-related education expenses 66, 67 Revolving lines of credit, interest on 33 Rollovers: Coverdell ESA 44 Qualified tuition program (QTP) 54, 55 S Scholarships and fellowship grants 5, 7, 28 Athletic scholarships 6 Eligible educational institution 6, 8 Qualified education expenses 6 Reporting 7 Scholarship, defined 5 Taxable 7 Tax-free 6 Tax treatment of 6 Section 501(c)(3) organizations (See Student loan cancellation) Section 529 program (See Qualified tuition program (QTP)) Self-employed persons: Deducting work-related education expenses 66 Service academy cadets 8 Sports, games, hobbies, and noncredit courses: American opportunity credit 17 Education savings bond program 57 Lifetime learning credit 29 Standard mileage rate: Work-related education 59, 64 State prepaid education accounts (See Qualified tuition program (QTP)) Student loan cancellation 38 Section 501(c)(3) organizations 39 Student loan interest deduction: Academic period 32 Adjustments to qualified education expenses 33 Allocation between interest and principal 33, 34 Claiming the deduction 36 Eligible educational institution 33 Eligible student 32 Figuring the deduction 35, 36 Include as interest 33 Income level, effect on amount of deduction 35 Loan repayment assistance 34 Modified adjusted gross income (MAGI) 35, 36 Table 4-2 35 Not included as interest 34 Phaseout 35, 36 Qualified education expenses 32 Qualified employer plans 32 Qualified student loans 32 Reasonable period of time 32 Related persons 32 Student loan interest, defined 32, 34 Third-party interest payments 34 When interest must be paid 34 Worksheet 4-1 37 Student loan repayment assistance 39 Surviving spouse: Coverdell ESA transfer to 49 T Tables and figures: American opportunity credit: Eligible student requirements (Figure 2-2) 19 Overview (Table 2-1) 11 Qualifying to claim (Figure 2-1) 13 Comparison of education tax benefits (Appendix B) 80 Coverdell ESAs: Contributions to (Table 6-2) 42 Distributions (Table 6-3) 46 Overview (Table 6-1) 40 Education credits: Overview of American opportunity credit (Table 2-1) 11 Overview of lifetime learning credit (Table 3-1) 24 Lifetime learning credit: Overview (Table 3-1) 24 Qualifying to claim (Figure 3-1) 26 Scholarships and fellowship grants, taxability of 6 Student loan interest deduction: MAGI, effect of (Table 4-2) 35 Overview (Table 4-1) 31 Summary chart of differences between education tax benefits (Appendix B) 80 Work-related education, qualifying (Figure 11-1) 61 Taxable scholarships and fellowship grants 7 Tax-free educational assistance: American opportunity credit 14 Coverdell ESA 46 Early distributions from IRAs 56 Education savings bond program 57 Lifetime learning credit 25 Qualified tuition program (QTP) 52 Work-related education 65 Tax help 67 Teachers 62, 63 Temporary-basis student, transportation expenses of 63 Title IV need-based education grants 8 Transfers: Coverdell ESA 44 Qualified tuition program (QTP) 54, 55 Transportation expenses: Work-related education 63, 64 Travel expenses: 50% limit on meals 64 Not deductible as form of education 65 Work-related education 64 Tuition reduction: American opportunity credit 20 Lifetime learning credit 30 Qualified 8, 9 U U.S. savings bonds 57 Unclaimed reimbursement: Work-related education 63 V Veterans' benefits 8 W Withholding 4 Working condition fringe benefit 59 Work-related education (See Business deduction for work-related education) Worksheets 7 American opportunity credit MAGI calculation (Worksheet 2-1) 21 Coverdell ESA: Contribution limit (Worksheet 6-1) 43 MAGI, calculation of (Worksheet 6-1) 43 Taxable distributions and basis (Worksheet 6-3) 50 Lifetime learning credit MAGI calculation (Worksheet 3-1) 30 Student loan interest deduction (Worksheet 4-1) 37 Publication 970 (2021) Page 87