What types of tax relief are available for costs of my childrens higher education?
A wide variety of relief is available. In some cases you’ll have to choose which to claim, based on what each is worth in your tax situation. There are tax exclusions, tax deferrals, tax credits, tax deductions, and relief from tax penalties. You can’t take two different kinds of relief for the same item. You can sometimes take one type of relief for one education item and another type for another item. Some benefits have income ceilings that bar or limit the relief as taxpayer’s income rises.
A. A wide variety of relief is available. In some cases you’ll have to choose which to claim, based on what each is worth in your tax situation. There are tax exclusions, tax deferrals, tax credits, tax deductions, and relief from tax penalties. You can’t take two different kinds of relief for the same item. You can sometimes take one type of relief for one education item and another type for another item. Some benefits have income ceilings that bar or limit the relief as taxpayer’s income rises.
