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Scholarships, Fellowship Grants, Grants, and Tuition Reductions American Opportunity Credit Lifetime Learning Credit Student Loan Interest Deduction Coverdell ESA† Qualified Tuition Program (QTP)† Education Exception to Additional Tax on Early IRA Distribution s† Education Savings Bond Program† Employer- Provided Educational Assistance† Business Deduction for Work-Related Education What education qualifies? Undergraduate & graduate

K–12 Undergraduate & graduate Undergraduate & graduate

Courses to acquire or improve job skills

Undergraduate & graduate Undergraduate & graduate

K–12 Undergraduate & graduate

K–12 for no more than $10,000 of tuition Undergradua te & graduate Undergraduate & graduate Undergraduate & graduate Required by employer or law to keep present job, salary, status

Maintain or improve job skills What are some of the other conditions that apply? Must be in degree or vocational program

Payment of tuition and required fees must be allowed under the grant Can be claimed for only 4 tax years

Must be enrolled at least half-time in degree program No felony drug conviction(s) Must not have completed first 4 years of postsecondary education before end of preceding tax year No other conditions Must have been at least half-time student in degree program Assets must be distributed at age 30 unless special needs beneficiary No other conditions No other conditions Applies only to qualified series EE bonds issued after 1989 or series I bonds No other conditions Can't be to meet minimum educational requirements of present trade/ business

Can't qualify you for new trade/ business

In what income range do benefits phase out? No phaseout $80,000 – $90,000

$160,000 – $180,000 for joint returns $80,000 – $90,000

$160,000 – $180,000 for joint returns $70,000 – $85,000

$145,000 – $175,000 for joint returns $95,000 – $110,000

$190,000 – $220,000 for joint returns No phaseout No phaseout $85,800 – $100,800

$128,650– $158,650 for joint returns No phaseout No phaseout †Any nontaxable distribution is limited to the amount that doesn't exceed qualified education expenses. Publication 970 (2022) Page 73