Table of Contents
Work-Related Educational Expenses - §1621
| Qualified Individuals | 1 |
| Qualifying Education | 2 |
| Nonqualifying Education | 4 |
| Deductible Educational Expenses | 6 |
| Educator Expenses - §62 | 9 |
Education Expense Credits - §25A10
| American Opportunity (former Hope) Tax Credit - §25A(b) | 11 |
| Lifetime Learning Credit - §25A(c) | 14 |
| Choosing Which Credit To Claim | 16 |
| Dependency | 17 |
| Reporting | 18 |
Education Savings (or Coverdell) Accounts - §53018
| Contribution Limits | 19 |
| Phased Out of Contribution | 20 |
| Excess Contributions | 20 |
| Qualified Expenses | 20 |
| Coordination with Other Education Incentives | 22 |
| Age 30 Required Distribution | 22 |
| Form 1099-Q Reporting | 22 |
| Documentation & Further Requirements | 23 |
| Rollovers | 23 |
| Withdrawals | 24 |
Deduction for Student Loan Interest - §22124
| Phase-out | 25 |
| Qualified Education Loan | 25 |
| Qualified Higher Education Expenses | 25 |
| Eligible Educational Institution | 26 |
| Eligible Student | 26 |
| Claiming the Deduction | 27 |
| Reporting | 27 |
Cancellation of Certain Student Loans - §10827
Qualified Tuition Programs - §52928
| Beneficiary | 29 |
| Distributions | 30 |
| Qualified Higher Education Expenses - §529(e)(3) | 31 |
| Eligible Educational Institution | 32 |
| Prohibition Against Investment Direction | 32 |
| Interaction with Educational Credits | 32 |
| Gift Tax Annual Exclusion | 32 |
| Rollovers Between §529 Tuition & ABLE Programs | 33 |
IRA Withdrawals for Education Expenses - §72(t)35
Employer-Provided Educational Assistance - §12735
Scholarships & Fellowships - §11736
| Qualified Scholarship or Fellowship - §117 | 36 |
| Payment for Services | 39 |
| Service Academy Cadets | 40 |
| Student Loans | 40 |
Qualified Tuition Reduction - §132(h)41
Educational Savings Bonds - §13542
| Income Exclusion | 42 |
| Limitation | 42 |
| Notice 90-7 | 44 |
Educational Incentives & Financial Aid44
| FAFSA | 45 |
| Financial Aid Planning for the Parent | 45 |
| Asset Planning Through the High-Income Parent | 46 |
| Other Sources of Financial Aid Info | 46 |
Answers & Explanations49
Glossary53
Keywords & Phrases53
Course Details
Author: Danny Santucci, J.D.
Danny earned his Bachelor of Arts in Political Science from the University of California at Irvine in 1969. He received his Juris Doctorate from Boalt Hall School of Law, University of California at Berkeley in 1972, at which time he began practice as a tax attorney in Southern California.
His legal career was initiated with the business and litigation firm of Edwards, Edwards and Ashton. Later he joined the Century City entertainment firm of Bushkin, Gaims, Gaines & Jonas working for many well-known celebrities. In 1980, Danny established the law firm of Santucci, Potter and Leanders, in Irvine, California. With increasing lecture and writing commitments, Danny went into sole practice in 1995. His practice emphasizes business taxation, real estate law and estate planning.
Danny has been an officer and active member in various organizations including the Glendale Bar Association, Century City Bar Association, Orange County and Los Angeles County Bar Associations, California State Bar Association, Toastmasters and Lions Club. He also avidly supports the American Association for the Advancement of Science. He has been admitted to practice before all California and federal courts including the United States Tax Court and the United States Supreme Court.
Serving as a lecturer for the Continuing Education of the Bar of California, Golden Gate University, and numerous state C.P.A. societies, Danny teaches a variety of tax, business and real estate courses. Danny has been in demand all across the country as a speaker for all levels of professional and civic organizations and numerous major seminar circuits. Danny spoke to over 2,000 people per month and traveled more than 150,000 miles annually.
In 2015, he withdrew from the lecture circuit to devote himself to tax research and writing. The author of numerous texts, he is listed in "Who’s Who in Creative Real Estate" and is admitted to the American Exchangor’s Hall of Fame.
Publication/Revision Date: 8/6/2026
Course Exam Questions (online): 10 (multiple-choice)
Program Delivery Method: Self-Study (NASBA QAS Self-Study)
Available Formats of Course Text: PDF or PDF plus printed copy sent in the mail
Course Level, Prerequisites, and Advance Preparation Requirements
| License | Course Level | Prerequisites | Advance Preparation Requirements |
|---|
| CPA | Overview | None | None |
| EA/OTRP | Overview | None | None |
* This program is appropriate for professionals at all organizational levels.
Sponsor ID Numbers
National Registry of CPE Sponsors ID: 107615
IRS Qualified Sponsor ID: FWKKO — Course ID: FWKKO-T-00791-26-S
State CPA Board Sponsor ID Numbers (where applicable)
Florida Division of Certified Public Accounting: 0004761
Hawaii Board of Public Accountancy: 14003
New York State Board for Public Accountancy: 002146
Ohio Accountancy Board: CPE .51 PSR
Pennsylvania State Board of Accountancy: PX178025
Texas State Board of Public Accountancy: 009349
Learning Objectives
As a result of studying the course material, you should be able to meet the objectives listed below:
- Identify deductible education expenses and travel costs under the requirements of §162.
- Determine the qualified credit amounts under the American Opportunity Tax Credit and the requirements of Coverdell education savings accounts.
- Identify the deductible amount to claim for §221 student loan interest and recognize the permissible benefits of §529 qualified tuition programs.
- Specify the tax-free benefits of §117 scholarships and fellowships and who is eligible for a §132 qualified tuition reduction.
- Identify educational incentives and financial aid requirements to meet college funding needs.
