Impact of the Education Incentives in the 1997 Taxpayer Relief Act on Taxpayers

摘要

The Taxpayer Relief Act of 1997 includes a variety of tax benefits for families with college-bound students. Among these are the Hope scholarship and lifetime learning credit, the education IRA, a deduction for interest related to education loans and the extension of the educational assistance plans. To maximize the advantages of these tax benefits, taxpayers will have to use very sophisticated tax planning. This paper highlights the tax planning necessary.