Use of tax expenditures FY 1999 Annual Plan - Volume 1. In addition to the many programs that ED administers, tax expenditures targeted for educational benefits also significantly support the objectives of the ED Strategic Plan in 1999. While they are under the jurisdiction of the Department of the Treasury, the postsecondary education tax credits and deductions authorized by the Balanced Budget and Taxpayer Relief Acts of 1997 and the proposed School Modernization Bonds support several Department of Education objectives.
Schools are strong, safe, disciplined, and drug-free.
All of the following tax credits, deductions, and forgiveness provisions were recently authorized by the Balanced Budget Act of 1997 or the Taxpayer Relief Act of 1997. Expanded opportunities to save for college New Education IRAs and use of regular IRAs for education expenses. Parents and grandparents can now create education IRAs and make penalty-free withdrawals from other IRAs. Once the child reaches age 30, his or her Education IRA must be closed or transferred to a younger member of the family. In order to provide greater flexibility for families saving in qualified State tuition plans, when a family uses a qualified State-sponsored tuition plan to save for college, no tax is due in connection with the plan until the time of withdrawal.