Also, parents must pay the student's tuition and claim the student as a dependent in order for the parent to claim the credit. Any withdrawals from the account, or investment earnings are tax-free when the money is used for education. Any money left over after the child has finished school can be used for another child. Although this account is called an education individual retirement account, it has nothing to do with retirement. Also, all the money must be withdrawn by the time the student is 30 years old even if they are still in school.
Students can now deduct the interest they pay on federal education loans from their taxes.
This deduction is available even if the tax filer doesn't itemize on their return. This deduction is limited to the first five years of the loan. Students attending the University of Colorado Health Sciences Center do NOT qualify for the Hope Scholarship Credit because it is only available to students in the first two years of their undergraduate education . Click here to return to the Financial Aid Information page .