These amounts will be adjusted annually for inflation. There are no enrollment or application fees. Parents can save for children. Grandparents can save for grandchildren. Aunts and uncles can save for nieces and nephews.
Stepparents can save for stepchildren.
There is no relationship requirement. If you qualify, you'll owe less in taxes, and you may get cash back. Even if you don't owe income tax you can get the credit. But, you must file a tax return. For 1998, a new tax credit takes effect.