Higher Education Tax Benefits:
Brief Overview and Budgetary Effects
Margot L. Crandall-Hollick
Analyst in Public Finance
July 10September 25, 2012
Congressional Research Service
7-5700
www.crs.gov
R41967
CRS Report for Congress
Prepared for Members and Committees of Congress
Higher Education Tax Benefits: Brief Overview and Budgetary Effects
Introduction
Since 1997, education tax benefits have become an increasingly important component of federal
higher education policy. Fourteen tax benefits are currently available for college students and
their parents to help pay for higher education. The available tax benefits are a mixture of credits,
deductions, exclusions, and other incentives. The benefits can be placed into one of three general
categories: incentives for current year expenses, preferential tax treatment of student loans, and
incentives for saving for college. The Joint Committee on Taxation (JCT) estimates the cost to the
federal government of education tax benefits—the revenue foregone from offering these
benefits—to be $78.9 billion between 2011 and 2015.1
This report provides a brief overview of the higher education tax benefits that are currently
available to students and their families. The report contrasts higher education tax benefits with
traditional student aid, presents a brief history of higher education tax policy over the past 60
years, summarizes key features of the available tax benefits, and provides JCT estimates of
revenue losses resulting from individual tax provisions. The summary is contained in Table 1 and
provides information on various aspects of each tax benefit including the type of benefit (credit,
deduction, etc.), the annual dollar amount of the benefit, what expenses qualify for the benefit,
what level of education the benefit can be claimed for, income levels at which the benefit phases
out and, any aspects of the benefit which are expiring during the 112th Congress, and recent legislation
to extend these temporary changes. Table 2 contains
estimates of the annual forgone federal
revenue attributable to each provision.
Tax Benefits Versus Traditional Student Aid
The federal government provides financial assistance for higher education expenses in two ways:
tax benefits and traditional student aid (loans, grants and work-study assistance). To qualify for
traditional financial aid, students first submit a free application for federal student aid (FAFSA) to
the Department of Education. Financial aid officers at the student’s college or university use the
asset and income information provided by the Department of Education to determine the student’s
federal financial aid award.2 This financial aid is then used to pay for higher education expenses
at the time they are due.
A summary of available traditional financial aid is beyond the scope of this report. For more
information, please see CRS Report RL31618, Campus-Based Student Financial Aid Programs
Under the Higher Education Act, by David P. Smole, CRS Report R40122, Federal Student
Loans Made Under the Federal Family Education Loan Program and the William D. Ford
Federal Direct Loan Program: Terms and Conditions for Borrowers, by David P. Smole and CRS
Report R41437, Federal Pell Grant Program of the Higher Education Act: Background, Recent
Changes, and Current Legislative Issues, by Shannon M. Mahan.
In contrast, most tax-based higher education assistance becomes available after higher education
expenses have been incurred—sometimes several months afterward. Aside from tax preferred
college savings accounts, taxpayers must wait until they file their federal income tax returns to
1
U.S. Congress, Joint Committee on Taxation, Estimates of Federal Tax For Fiscal Years 2011-2015, January 17,
2012, JCS-1-12.
2
This information can also be used to calculate any aid provided by the college or university to the student.
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Higher Education Tax Benefits: Brief Overview and Budgetary Effects
college savings accounts, taxpayers must wait until they file their federal income tax returns to
claim any federal higher education tax benefits. Another difference between the two forms of
educational assistance is that traditional financial aid is often directed toward students with
financial need, while tax benefits are generally available to eligible taxpayers regardless of need.
Brief Historical Perspective of Tax Benefits
Tax benefits for higher education were first introduced nearly 60 years ago. While most of these
benefits were originally structured as deductions and exclusions, which reduce taxable income,
they now include tax credits, which directly reduce tax liability.
Between 1954 and 1996, eight tax benefits for education were enacted:
1. an exclusion for scholarship, fellowship, and tuition reductions;
2. a parental exemption for students age 19 to 23 who were enrolled in college;
3. a business expense deduction for work-related education;
4. an exclusion for employer-provided education assistance;
5. an exclusion for the interest earned on educational savings bonds;
6. an exclusion of qualifying cancelled student loans from taxable income;
7. an unlimited gift tax exclusion for amounts paid by a donor directly to an
educational institution for tuition payments on behalf of the donee; and
8. an exclusion for earnings from qualified tuition programs (QTPs), also known as
Section 529 Plans.
The deduction for student loan interest, which had existed since 1954, was eliminated with the
passage of the Tax Reform Act of 1986 (TRA 86, P.L. 99-514). TRA 86 disallowed all forms of
personal interest deductions other than for mortgage interest.
The Taxpayer Relief Act of 1997 (P.L. 105-34) enacted five new education tax benefits:
1. the Hope Tax Credit;
2. the Lifetime Learning Credit;
3. a reinstatement of the student loan interest deduction;
4. an exclusion for earnings accruing to Education individual retirement accounts
(later renamed Coverdell Education Savings Accounts); and
5. a cancellation of the penalty for early withdrawals from individual retirement
accounts (IRAs).
More recently, 2 additional tax benefits were enacted, bringing the total number of education tax
benefits to 15, although only 14 are in effect in a given year, since the Hope Tax Credit was
temporarily replaced by the American Opportunity Tax Credit.
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Higher Education Tax Benefits: Brief Overview and Budgetary Effects
1. An above-the-line deduction3 for higher education expenses (the “tuition and
fees” deduction) was authorized by the Economic Growth and Tax Relief
Reconciliation Act of 2001 (P.L. 107-16)4.
2. The Hope Credit was enacted as part of the American Recovery and
Reinvestment Act of 2009 (ARRA; P.L. 111-5). This credit temporarily replaced
the American Opportunity tax credit (AOTC) for the 2009 and 2010 school years.
A number of expiring tax benefits and modifications to other tax benefits were extended by the
Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (P.L. 111312) through the end of 2012 including: the AOTC; the exclusion for employer provided
educational assistance; modifications to the exclusion of scholarships, grants, and tuition
reduction concerning specific scholarships; modifications to the student loan interest deduction;
and modifications to Coverdell Accounts. In addition, P.L. 111-312 extended the tuition and fees
deduction through the end of 2011.
Two bills to extend the Bush tax cuts, H.R. 8, the Job Protection and Recession Prevention Act of
2012, and S. 3413, the Tax Hike Prevention Act, would extend all these provisions through the
end of 2013, except the American Opportunity tax credit and the above-the-line tuition and fees
deduction. S. 3412 would extend all the provisions (including the American Opportunity tax
credit) except the tuition and fees deduction through the end of 2013. S. 3521, the Family and
Business Tax Cut Act of 2012, would extend the above-the-line tuition and fees deductions for
two years—2012 and 2013. Details of which provisions are extended by these bill are provided in
Table 1.
Summary and Cost of Current Benefits
Table 1 summarizes the higher education tax benefits currently available. The benefits can be
divided into three groups: incentives for current year higher education expenses, incentives that
provide preferential tax treatment of student loan expenses, and incentives for saving for college.
Generally, a taxpayer cannot claim more than one tax benefit for the same education expense.
The benefits available are either a tax credit, deduction, exemption, or exclusion. While these
terms are sometimes used interchangeably, they are different. It is important to understand the
distinction between the types of incentives:
•
Tax credits reduce the amount an individual owes in taxes directly, on a dollar
for dollar basis. Credits are available to all qualified taxpayers, whether they
itemize deductions or not. Credits can be nonrefundable or refundable.
Nonrefundable credits cannot exceed taxes owed, and therefore can only reduce
an individual’s tax liability to zero. Refundable credits can exceed taxes owed,
meaning a taxpayer with no tax liability receives the credit amount as a refund
check. A tax credit is partially refundable if, in cases where the credit is larger
than the taxpayer’s tax liability, the IRS only refunds part of the difference.
Education tax credits include the Hope Credit and Lifetime Learning Credit, both
nonrefundable and the American Opportunity Tax Credit which is partially
refundable.
•
Tax deductions reduce the amount of a taxpayer’s income which is subject to
taxation (“taxable income”) by the amount of the deduction. As a result,
deductions reduce a taxpayer’s tax liability, but only by a percentage of the
amount deducted depending on the taxpayer’s highest marginal tax bracket.5
3
Above-the-line deductions, unlike itemized deductions, are available to all tax filers. Taxpayers who claim the
standard deduction cannot benefit from itemized deductions.
4
This provision was originally scheduled to expire in 2006 under EGTRRA. It was subsequently extended by P.L. 109432 (2006-2007), P.L. 110-343 (2008-2009), and P.L. 111-312 (2010 and 2011).
5
For example, a $4,000 deduction for someone whose highest marginal tax bracket is the 10% bracket will result in a
$400 reduction in that taxpayer’s tax bill. If the taxpayer’s highest marginal tax bracket is the 35% bracket, their tax bill
(continued...)
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Higher Education Tax Benefits: Brief Overview and Budgetary Effects
3
Above-the-line deductions, unlike itemized deductions, are available to all tax filers. Taxpayers who claim the
standard deduction cannot benefit from itemized deductions.
4
This provision was originally scheduled to expire in 2006 under EGTRRA. It was subsequently extended by P.L. 109432 (2006-2007), P.L. 110-343 (2008-2009), and P.L. 111-312 (2010 and 2011).
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Higher Education Tax Benefits: Brief Overview and Budgetary Effects
Education tax credits include the Hope Credit and Lifetime Learning Credit, both
nonrefundable and the American Opportunity Tax Credit which is partially
refundable.
•
Tax deductions reduce the amount of a taxpayer’s income which is subject to
taxation (“taxable income”) by the amount of the deduction. As a result,
deductions reduce a taxpayer’s tax liability, but only by a percentage of the
amount deducted depending on the taxpayer’s highest marginal tax bracket.5
Hence, deductions are generally less valuable than a given dollar amount in tax
credits. Generally, the amount that may be deducted is equal to a portion of some
expense incurred. Deductions can either be “above the line” or “itemized.”
Above the line deductions are typically more advantageous than itemized
deductions and may be claimed by most taxpayers. Itemized deductions may only
be claimed by those taxpayers who itemize all their deductions on their tax
returns. The alternative to itemizing is claiming the standard deduction.
Education tax deductions include the business deduction for work related
expenses (an itemized deduction), the deduction for tuition and fees, and the
student loan interest deduction (both “above-the-line” deductions).
•
Tax exemptions reduce the amount of a taxpayer’s income which is subject to
taxation, by a fixed dollar amount per exemption claimed. Generally, every
taxpayer is allowed to claim one exemption for themselves, one exemption for a
spouse, and one for each dependent. Exemptions function similarly to deductions
in that they reduce the income that is subject to taxation, but they are based on
fixed amount per person instead of actual expenses. An exemption’s value to a
taxpayer is also similar to the value of a deduction in terms of being proportional
to a taxpayer’s highest marginal tax bracket. Parents of students between the ages
of 19 and 23 are eligible for a personal tax exemption for their children.
•
Tax exclusions are amounts of income that are not included as income for tax
purposes because the tax code explicitly excludes—or exempts—them from
taxation. Education tax exclusions include the exclusion of certain scholarships,
grants, and tuition reductions, the exclusion of employer provided educational
assistance, the exclusion of qualifying cancelled student loans, and the exclusion
of direct transfers to educational institutions.
As Table 1 shows, there are a number of limitations to the available tax benefits. Some benefits
are subject to an annual limit, or “cap.” For example, the maximum annual American Opportunity
Tax Credit that may be claimed is $2,500. A number of the tax benefits may be limited by the
type of “qualifying” expenses they are used to offset. For some tax benefits, only tuition and
required fees qualify. Generally fees that must be paid to the educational institution as a condition
of enrollment or attendance are considered “required fees.” Other tax benefits can be used to
offset course-related books, supplies, and materials. And still other benefits may be used to cover
travel and other expenses.
A number of higher education tax benefits also have income limitations. When an income
limitation does exist, it is in the form of an income phase-out range. Taxpayers with incomes
5
For example, a $4,000 deduction for someone whose highest marginal tax bracket is the 10% bracket will result in a
$400 reduction in that taxpayer’s tax bill. If the taxpayer’s highest marginal tax bracket is the 35% bracket, their tax bill
will fall by $1,400.
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Higher Education Tax Benefits: Brief Overview and Budgetary Effects
below the start of the phase-out range are eligible to claim the maximum tax benefit amount. The
amount of the credit that can be claimed is then reduced for individuals with incomes within the
phase-out range, and is zero for those with incomes above the phase-out range. In addition,
legislation introduced in the 112th Congress which would extend certain expiring provisions (or
temporary modifications to these provisions) is identified in this table.
Table 2 presents Table 2 presents
the JCT cost estimates for each available tax benefit. The JCT advises that these
estimates cannot
be simply summed to estimate the aggregate revenue loss from multiple tax
provisions. This is
because of interaction effects. When the revenue loss associated with a specific
tax provision is
estimated, the estimate is made assuming that there are no changes in other
provisions or in
taxpayer behavior. When individual tax expenditures are summed, the interaction effects may
(...continued)
will fall by $1,400.
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Higher Education Tax Benefits: Brief Overview and Budgetary Effects
effects may lead to different revenue loss estimates. Consequently, aggregate tax expenditure
estimates,
derived from summing the estimated revenue effects of individual tax expenditure
provisions, are
unlikely to reflect the actual change in federal receipts associated with removing
various tax
provisions.
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Table 1. Overview of Education Tax Benefits, 2012
Authority
Type of
Benefit
Annual Limit
Qualifying Expenses
Qualifying
Education Education
Level
Income Phaseout Range
ExpirationPhase-out
Range
Expiration
Legislation
to Extend
Through
the End of
2013
TAX BENEFITS FOR TUITION AND RELATED EXPENSES
American
Opportunity Credit
IRC Sec.
25A
Tax CreditPartially
Refundable
$2,500 credit
per student
(1) Tuition and required
enrollment fees
(2) Course-related
books,
supplies and
equipment
1stfirst 4 years of
postsecondary
education
(undergraduate)
$80K-$90K
$160K-$180K
(married
joint)
December 31, 2012
S. 3412
40% of credit
may be
refundable (up
to $1,000)
HOPE Credita
IRC Sec.
25A
Tax CreditNonrefundable
$1,800 credit
per student
(2008 levels)a
(1) Tuition and required
enrollment fees
1stfirst 2 years of
postsecondary
education
(undergraduate)
$48K-$58K
$96K-$116K
(married joint)
(2008 levels)a
None
NA
Lifetime Learning
Credit
IRC Sec.
25A
Tax CreditNonrefundable
$2,000 credit
per tax return
(1) Tuition and required
enrollment fees
Undergraduate and
Graduate
$52K-$62K
$104K-$124K
(married joint)
None
Courses to acquire or
improve job skills
Deduction for Tuition
and Fees
joint)
None
NA
Deduction for
Tuition and Fees
IRC Sec. 222
Deduction
(“Above the
Line”) of
qualified
expenses from
gross income
$4,000
deduction
(1) Tuition and required
enrollment fees
Undergraduate and
Graduate
$65K-$80K
$130K-$160K
(married
joint)
December 31, 2011
S. 3521
Business Deduction
for Work Related
Education Expenses
IRC Sec. 162
Reg.
§1.162-5
Deduction
(Itemized) of
qualified
expenses from
AGI
None
(1) Tuition and required
enrollment fees
(2) Transportation and
travel
(3) Other necessary
expenses
Education must be
required by employer
or or
law to keep
present job,
salary,
status or maintain or
or improve job skills
None
None
NA
CRS-6
Courses to acquire or
improve job skills
CRS-6
Authority
Type of
Benefit
Annual Limit
Qualifying Expenses
Qualifying
Education Education
Level
Income Phaseout Range
ExpirationPhase-out
Range
Expiration
Legislation
to Extend
Through
the End of
2013
Exclusion of
Scholarships, Grants,
and Tuition
Reductionsb
IRC Sec. 117
Exclusion from
taxable
income if
scholarship,
grant is used to
pay
to pay
qualifying
education
expenses
None
(1) Tuition and required
enrollment fees
(2) Course-related
books,
supplies and
equipment
Undergraduate and
Graduate
None
Exclusion of National Health
Service Corps and F. Edward
Herbert Armed Services
Health Professionals
Scholarships will expire
December 31, 2012
S. 3412, S.
3412, HR.8
Exclusion of
Employer Provided
Educational
Assistance
IRC Sec. 127
Exclusion from
taxable
income
$5,250
exclusion
(1) Tuition and required
enrollment fees
(2) Course-related
books,
supplies and
equipment
Undergraduate and
Graduate
None
December 31, 2012
S. 3412, S.
3412, HR.8
Parental Personal
Exemption for
Dependent Students
19-23 Years Old
IRC Sec. 151
& 152
Exemption of
fixed amount
per dependent
$3,800 per
dependent
Not applicable (NA)
Student must be
under under
24 by the end
of the tax
year and
enrolled full
time at a
qualifying institution
None
None
TAX BENEFITS FOR STUDENT LOANS
Student Loan Interest
Deduction
IRC Sec. 221
Deduction
(“Above the
line” ) of
interest paid
$2,500 qualifying
institution
None
None
NA
(1) Tuition and required
enrollment fees
(2) Course-related
books,
supplies and
equipment
(3) Room and board
(4) Other necessary
expenses (including
transportation)
Undergraduate and
Graduate
$60K-$75K
$125K-$155K
(married joint)
Both the higher income
phase-out phaseout ranges and the
extended extended
deductibility of
interest beyond
the first 60
months of interest payments
payments are scheduled to expire
December 31, 2012
expire December 31, 2012
S. 3412, S.
3412, HR.8
TAX BENEFITS FOR STUDENT LOANS
Student Loan
Interest Deduction
IRC Sec. 221
CRS-7
Deduction
(“Above the
line” ) of
interest paid
$2,500
Type of
Benefit
Exclusion of
Qualifying Cancelled
Student Loans
IRC Sec.
108(f)
Exclusion from
taxable income
income
Annual Limit
Qualifying Expenses
None
(1) Tuition and required
enrollment fees
(2) Course-related
books,
supplies and
equipment
(3) Room and board
(4) Other necessary
expenses (including
transportation)
Undergraduate and
Graduate
None
None
CRS-7
Authority
Type of
Benefit
Annual Limit
Qualifying Expenses
Qualifying
Education Level
Income Phaseout Range
ExpirationQualifying Education
Level
Income Phase-out
Range
Expiration
Legislation
to Extend
Through
the End of
2013
Undergraduate and
Graduate
None
None
NA
Undergraduate and
Graduate
None
None
NA
TAX BENEFITS FOR EDUCATION SAVINGS PLANS
Qualified Tuition
Programs (529
Plans)
IRC Sec. 529
CRS-8
Earnings not
taxed
None
(1) Tuition and required
enrollment fees
(2) Books, supplies and
equipment
(3) Expenses for special
needs services
(4) Room and board if at
least half-time student
Undergraduate and
Graduate
None
None
at least half-time
student
Type of
Benefit
Coverdell Education
Savings Accountsc
IRC Sec. 530
Earnings not
taxed
Annual Limit
Qualifying Expenses
$2,000
contribution per
per beneficiary
K-12 Expenses
(1) Tuition and fees
(2) Books, supplies and
equipment
(3) Academic tutoring
(4) Special needs
services
(5) Room and board
(6) Uniforms
(7) Transportation
(8) Required
supplementary items and
and services
(9) The purchase of a
computer if it is used by
the beneficiary or their
family.
K-12
$95K-$110K
$190K-$220K
(married joint)
Several modifications to
Coverdell’s are scheduled to
expire on December 31,
2012. These include:
Higher Education
Expenses
(1) Tuition and required
enrollment Fees
(2) Books, Supplies and
Equipment
(3) Expenses for special
needs services
(4) Payments to QTP
(5)Room and board if at
least half-time student
CRS-8
Undergraduate and
Graduate
(1) The increase in the
annual Qualifying Education
Level
K-12
Undergraduate and
Graduate
Income Phase-out
Range
$95K-$110K
$190K-$220K
(married joint)
(1) The increase in the annual
contribution limit;
(2) The increase in the phase
out range for married
taxpayers;
(3) Special needs beneficiary
rules;
(4) Rules governing
contributions by
corporations corporations
and other
entities;
(5) Rules relating to
contributions made until
April April
15th;
(6) The expansion of the
definition of qualified
education education
expenses to
include K-12
expenses;
(7) Coordination between
tax-free taxfree distributions and
education tax credits;
(8) Allowance of
contributions contributions
to 529 plans
without being
subject to an
excise tax.
Authority
Type of
Benefit
Annual Limit
Qualifying Expenses
Qualifying
Education Level
Income Phaseout Range
Expiration
excise tax.
S. 3412, S.
3412, HR.8
$72,850-$87,850
$109,250-$139.250
(married joint)
None
NA
Higher Education
Expenses
(1) Tuition and required
enrollment Fees
(2) Books, Supplies and
Equipment
(3) Expenses for special
needs services
(4) Payments to QTP
(5)Room and board if at
least half-time student
Exclusion of Interest
on Education Savings
Bonds
IRC. Sec.
135
CRS-9
Interest not
taxed
Amount of
qualified
education
expenses
(1) Payments to Coverdell
Coverdell ESAs
(2) Payments to QTPs
Undergraduate and
Graduate
$72,850-$87,850
$109,250$139.250
(married joint)
None
Early Withdrawals
from IRAs
IRC Sec.
72(t)
No 10%
additional tax on
early Expiration
Legislation
to Extend
Through
the End of
2013
Type of
Benefit
Annual Limit
Qualifying Expenses
Qualifying Education
Level
Income Phase-out
Range
Expiration
Legislation
to Extend
Through
the End of
2013
Early Withdrawals
from IRAs
IRC Sec. 72(t)
No 10%
additional tax
on early
withdrawal
Amount of
qualified
education
expenses
(1) Tuition and required
enrollment fees
(2) Books, supplies and
equipment
(3) Expenses for special
needs services
(4) Room and board if at
at least half-time
student
Undergraduate and
Graduate
None
None
NA
Uniform Transfers to
Minors
to Minors
IRC Sec.
2503(e)
Exclusion from
income of direct
transfer to
direct transfer
to educational
institution
Unlimited
(1) Amounts paid directly
to educational institution
directly to educational
institution for tuition
Undergraduate and
Graduate
None
None
NA
Sources: Internal Revenue Service, Publication 970: Tax Benefits for Education 201l; U.S. Congress, Joint Committee on Taxation, List Of Expiring Federal Tax Provisions 20102020, 112th Congress, January 21, 2011, JCX-2-11; CCH Tax Law Editors, U.S. Master Tax Guide 2011; and Internal Revenue Service, Revenue Procedure 2011-52.
Notes:
a.
The parameters for the Hope Credit are for 2008, the most recent year for which the credit was in effect. The credit is scheduled to return in 2013, at which time the
annual limit and income phase-out ranges will be adjusted for inflation.
b.
Students must generally pay taxes on any part of a scholarship, fellowship, or tuition reduction that can be attributed to teaching, research, or other services that have
been performed, are being performed, or will be performed. A temporary exception to this general rule was allowed for the National Health Service Corps
Scholarship Program and the F. Edward Hebert Armed Forces Health Professions Scholarship and Financial Assistance Program by EGTRRA (P.L. 107-16).
c.
The income phaseouts for Coverdells apply to any individual who contributes to the Coverdell (including the beneficiary).
CRS-910
Higher Education Tax Benefits: Brief Overview and Budgetary Effects
Table 2. Estimated Budgetary Impact of Tax Benefits for Higher Education Expenses,
2011-2015
(billions of dollars)
Tax Benefit
2011
2012
2013
2014
2015
Total
Hope/American Opportunity Tax Credita,b
7.1
8.3
4.1
2.5
2.5
24.4
Lifetime Learning Tax Credit
1.9
2.1
2.8
3.0
3.0
12.9
Exclusion of Scholarship and Fellowship Incomea
2.2
2.4
2.5
2.7
2.8
12.6
Parental Personal Exemption for Students aged 19 to 23
4.4
2.0
2.2
2.4
2.1
13.1
0.9
0.9
0.9
1.0
1.0
4.7
Deduction for Student Loan Interesta
1.1
1.2
0.7
0.5
0.5
4.1
Exclusion of Earnings of Qualified Tuition Programs (529 Plans)
Exclusion of Employer-Provided Education
Benefitsa
0.5
0.7
0.8
0.9
1.1
4.0
Feesa
0.8
0.2
0.0
0.0
0.0
1.0
Exclusion of Tuition Reductions
0.2
0.2
0.2
0.2
0.2
1.1
Exclusion of Earnings of Coverdell Education Savings Accountsa
0.1
0.1
0.1
0.1
0.2
0.5
Exclusion of Certain Discharged Student Loans
0.1
0.1
0.1
0.1
0.1
0.5
c
c
c
c
c
0.1
19.3
18.2
14.4
13.4
13.5
78.9
Deduction for Tuition and
Exclusion of Interest On Education Savings Bonds
Total
Source: U.S. Congress, Joint Committee on Taxation, Estimates of Federal Tax For Fiscal Years 2011-2015,
January 17, 2012, JCS-1-12.
Notes: A positive estimate corresponds to a federal revenue cost. Items may not sum due to rounding.
a.
Provision or modification of the provision is set to expire in 2011 or 2012.
b.
These estimates include the outlays resulting from the refundable portion of the AOTC.
c.
Revenue losses for 2011-2015 are less than $50 million.
Author Contact Information
Margot L. Crandall-Hollick
Analyst in Public Finance
mcrandallhollick@crs.loc.gov, 7-7582
Congressional Research Service
1011