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Losses 53 Recontribution 51 Rollovers 53, 54 Tax benefit of 50 Taxability of distributions 51-53 Taxable earnings 52 Transfers 53, 54 Qualified tuition reduction 8, 9 Qualified U.S. savings bonds 56 Qualifying work-related education 59-62 Determining if qualified (Figure 11-1) 60 R Recapture: American opportunity credit 15 Lifetime learning credit 27 Recordkeeping requirements Work-related education 66 Refinanced and consolidated student loans 33 Reimbursements Nondeductible expenses 65 Work-related education 64, 65 Related persons: Coverdell ESA 44 Qualified tuition program (QTP) 53 Student loan interest deduction 32 Repayment programs (See Student loan repayment assistance) Reporting American opportunity credit 22 Coverdell ESA 43, 45, 47 Early distributions from IRAs 55 Education savings bond program 57 Lifetime learning credit 31 Qualified tuition program (QTP) 52, 53 Scholarships and fellowship grants, taxable 6 Student loan interest deduction 36 Tuition reduction, taxable 9 Work-related education expenses 65, 66 Revolving lines of credit, interest on 33 Rollovers Coverdell ESA 43 Qualified tuition program (QTP) 53, 54 S Scholarships and fellowship grants 5, 6, 27 Athletic scholarships 6 Eligible educational institution 6, 8 Qualified education expenses 6 Reporting 6 Scholarship, defined 5 Tax treatment of 5 Tax-free 5, 6 Taxable 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 65 Service academy cadets 7 Sports, games, hobbies, and noncredit courses: American opportunity credit 18 Education savings bond program 56 Lifetime learning credit 28 Standard mileage rate: Work-related education 58, 63 State prepaid education accounts (See Qualified tuition program (QTP)) Student loan cancellation 37 Section 501(c)(3) organizations 38 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 32 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 31, 32 Reasonable period of time 32 Related persons 32 Student loan interest, defined 31, 34 Third-party interest payments 34 When interest must be paid 34 Worksheet 4-1 36 Student loan repayment assistance 38 Surviving spouse: Coverdell ESA transfer to 48 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 72 Coverdell ESAs: Contributions to (Table 6-2) 41 Distributions (Table 6-3) 45 Overview (Table 6-1) 39 Education credits: Overview of American opportunity credit (Table 2-1) 11 Overview of lifetime learning credit (Table 3-1) 23 Lifetime learning credit: Overview (Table 3-1) 23 Qualifying to claim (Figure 3-1) 26 Scholarships and fellowship grants, taxability of 5 Student loan interest deduction: MAGI, effect of (Table 4-2) 35 Overview (Table 4-1) 31 Summary chart of differences between education tax benefits 72 Work-related education, qualifying (Figure 11-1) 60 Tax help 66 Tax-free educational assistance American opportunity credit 14 Coverdell ESA 45 Early distributions from IRAs 55 Education savings bond program 56 Lifetime learning credit 25 Qualified tuition program (QTP) 51 Work-related education 64 Taxable scholarships and fellowship grants 6 Teachers 61, 62 Temporary-basis student, transportation expenses of 62 Title IV need-based education grants 7 Transfers Coverdell ESA 43 Qualified tuition program (QTP) 53, 54 Transportation expenses Work-related education 62, 63 Travel expenses: 50% limit on meals 63 Not deductible as form of education 64 Work-related education 63 Tuition reduction American opportunity credit 20 Lifetime learning credit 29 Qualified 8, 9 U U.S. savings bonds 56 Unclaimed reimbursement: Work-related education 62 V Veterans' benefits 8 W Withholding 4 Work-related education (See Business deduction for work-related education) Working condition fringe benefit 58 Worksheets 6 American opportunity credit MAGI calculation (Worksheet 2-1) 21 Coverdell ESA 49 Contribution limit (Worksheet 6-1) 42 MAGI, calculation of (Worksheet 6-1) 42 Taxable distributions and basis (Worksheet 6-3) 49 Lifetime learning credit MAGI calculation (Worksheet 3-1) 30 Student loan interest deduction (Worksheet 4-1) 36 Publication 970 (2022) Page 79