What if I use funds from a Coverdell Education Savings Account to pay for tuition and expenses?
When you pay your tuition with tax-advantaged education funds from a Coverdell Education Savings Account or a state tuition plan, or with the interest on U.S. savings bonds, these amounts must be subtracted from your qualified expenses to arrive at the deductible amount. The same rule applies to any nontaxable employer-provided education benefits you receive. What about graduate school? Graduate or undergraduate-level college courses can be deducted and you dont have to be a full-time student to qualify. However, the educational institution must be eligible to participate in the student aid programs administered by the Department of Education. Virtually all accredited public, nonprofit, and proprietary postsecondary institutions are eligible. What if I have two children in college at the same time? The tuition and fees deduction is $4,000 total per year, regardless of how many dependents are in school at the same time. Can I take either the Hope or Lifetime Learning Credit and the tuit
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- What if I use funds from a Coverdell Education Savings Account to pay for tuition and expenses?
