What tax incentives exist for higher education? Q.What tax incentives exist for higher education? A.Federal tax incentives for higher education include tax benefits for saving, tax benefits for tuition and related expenses, and tax benefits for student loans—in other words, benefits before, during, and after college attendance. These incentives mostly target middle-class households who do not benefit from many federal grant programs for students. Read more about What tax incentives exist for higher education?
What is the tax treatment of college and university endowments? Q.What is the tax treatment of college and university endowments? A.A small number of colleges and universities in the United States have accumulated significant wealth in the form of endowments. Because these institutions are public and private nonprofit charitable enterprises, donations to their endowments are not taxed and the assets grow free of taxes. In 2017 Congress created an exception to this practice, imposing a tax on the endowment earnings of a small number of private nonprofit colleges and universities. Read more about What is the tax treatment of college and university endowments?
What tax incentives exist to help families pay for college? Q.What tax incentives exist to help families pay for college? A.Rapidly rising college expenses in the 1990s spurred the 1997 enactment of tax incentives for higher education, which currently include the American opportunity tax credit, the lifetime learning credit, and the student loan interest deduction. Read more about What tax incentives exist to help families pay for college?