Use the following chart to distinguish among the following education incentives: Qualified State Tuition Plans, American Opportunity Tax Credit/Hope Credit, Lifetime Learning Credit, Coverdell Education Savings Accounts, Interest on Education Loans and Educational Savings Bonds.

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Julie Welch (Runtz), CPA, CFP, and Randy Gardner, LLM, CPA, CFP, are the authors of 101 Tax-Saving Ideas, 9th edition, published by Wealth Builders Press. To order ($27.95), call 816-561-1400, fax 816-561-6296 or email This email address is being protected from spambots. You need JavaScript enabled to view it..

 

REVIEW QUESTION  

Which education incentive for 2010 covers the higher education expenses for tuition, fees, books, supplies, equipment and room and board: Interest on education loans up to $2500, Lifetime Learning Credit, Qualified State Tuition Plans, American Opportunity Tax Credit or Coverdell Education Savings Accounts?

Answer: Interest on education loans up to $2500, Lifetime Learning Credit and Qualified State Tuition Plans

American Opportunity Tax Credit or Coverdell Education Savings Accounts do not cover room and board.

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